Having trouble with two types of shops "competing for work."

[JR's]

In my area there are two type of shops that give me a hard time competing with.

For argument sake, let's say, these shops are selling widgets. We will call these widgets quarters.

Shop type, A. Is selling his widgets (quarter) for a nickel. ???
Shop type B. is selling his widgets (quarter) for a nickel to a quarter.

Longtime client comes in to show me the quarter he just bought. [Me] wow. That is a nice looking quarter, what did you pay for that. [Customer]. I paid a nickel for that! [Me]. You're kidding right! [Customer] no. Here is the bill, see one nickel. Can you match or beat that price. [Me] no, for God sakes. It's a quarter there is no way I could do that for a nickel. It's a quarter I don't know how they could do it for a nickel. Anyway you slice it it's a quarter. [Customer] okay JR. I just wanted to give you a shot at it.

Customer comes and ask can you make a quarter like this. [Me] yes I can, but that is not a quarter it's a slug a wooden nickel. [Customer]. That's not what was told to me, this is top of the line quarter. It should last a real long time. [Me]. You will be lucky if that last one to two years. [Customer] yeah right, see you later Jack.

Shop, A. Will either figure out how to price or go out of business. Which could be a long time waiting.

Shop B.'s work will eventually catch up to him. Which could be a long time waiting.

What to do what to do. Just ranting. Thanks for reading.

I didn't have any mind altering word images(like Jill has). I still can't get that image out of my head. The gypsy that smelled like sour milk. and
I didn't have any cool pictures like Gino has. Especially the one with the train with all those people hanging on to it. but thanks for reading.


JR

 

[TheSnowman]

All ya can do is hang in there, and educate them on how you have no clue how they can stay in business paying customers to do their work. I think we all deal with that. No advice...but I liked the analogy. I may have to use that when someone comes in wanting me to lose money on a job so I can "get the job". I'll ask if they'll sell me quarters for nickels.

 

[JimmyG]

Yep cool analogy JR...I enjoyed reading that and certainly relate...I think we all deal with that also...
I don't think you will ever educate the fellow quarter maker that is stuck on selling his quarters for a nickel that he can actually sell them for a quarter...Believe me, I have tried it and all it does is give them more incentive to keep on the same in an effort to corner the quarter making market and take jobs away from you...

...

 

[jiarby]

buy your quarters from the nickel guy and sell them for 15¢ (or 40% off!)

Ignore the other one (selling plug nickels for a quarter) You are selling REAL nickels for 15¢ and under cutting him.

Hopefully you will do enough volume that you drive them both out of business and can start minting your own coins again.

 

[SignManiac]

Don't waste your time on nickles and quarters, go after the dollars!

 

[Mosh]

Move further away from MY shop.....

 

[JR's]

Thanks guys you made my day.

JR

 

[Firefox]

Don't waste your time on nickles and quarters, go after the dollars!

Can't do that, the guy down the street is selling them for pennies!

 

[Craig Sjoquist]

Well customer A will sooner or later will be paying a quarter for a quarter, because shop A will figure out that they can charge a quarter and get it.

Then come B that shop will close more then likely in about a year.. so not to worry ..

Have the same deal going on here, shop down the street bought fancy printer, and doing good amount of work screen printing coro signs as well, how they could afford a printer, one year later their own sign has faded badly and closing shop, ...why ..not enough work and what they do do hard to read, so no or few repeat customers.

So not to worry find and do work that brings you back in contact with customers.

 

[anotherdog]

Ah but...
the big money bag factory down the road closes and 5 of the unemployed guys buy chinese quarter machines and run them from their basement.
Meanwhile you can get quarters for 3 cents on ebay shipped from Hong Kong.

 

[Rooster]

My father is forever trying to squeeze two dimes out of a nickle. Nobody tell him about this or he'll figure he'll be able to trade the two dimes he gets back for four quarters down the road. Then I'll never hear the end of how he squeezed four quarters out of a single nickle.

 

[Williams Signs]

Got shops like that all over. Got one around me that says they have 15 year printed vinyl with 22 mm lam, and coro that will last 15 years also. All this for the low low price of ........ wait for it........ 24 quarters for double sided.

 

[JasperST]

There seems to be a lot of that going around here too, maybe everywhere. They either work for giggles or they cut enough corners to make a small profit. Since I'm doing neither I'm not worried about it. My life doesn't depend on this business, it's been good for 26 years but it seems like for every dipstick that goes belly up two will replace him.

The customers that know the difference are the only ones I'm interested in. I don't bid on cold calls, if an existing customer asks for a price, I probably will flip them one.

The upside to this is that if the economy picks up, a lot of sign businesses will be busy replacing the deteriorating cheap crap out there.