Real estate pricing

[SignManiac]

So I get a call today from a well known local real estate company wanting a price on 2'x3' aluminum signs. I immediately asked why they were calling me and not their regular sign vendor? The very young lady explained that they were shopping around for better pricing due to the economy...

I said to her, well you have just called the most expensive shop around and to keep on calling I think I heard her jaw hit the floor! I know that most realtors buy their signs in quantities and they are screen printed for the cheapest price they can get. Even though I have a flatbed, I just can't be bothered cranking out signs for a few dollars profit. I guess we all have to decide what we will or will not do for a buck, but I want to make good money on the jobs I take on!!!

 

[Locals Find!]

So I get a call today from a well known local real estate company wanting a price on 2'x3' aluminum signs. I immediately asked why they were calling me and not their regular sign vendor? The very young lady explained that they were shopping around for better pricing due to the economy...

I said to her, well you have just called the most expensive shop around and to keep on calling I think I heard her jaw hit the floor! I know that most realtors buy their sign in quantities and they are screen printed for the cheapest price they can get. Even though I have a flatbed, I just can't be bothered cranking out signs for a few dollars profit. I guess we all have to decide what we will or will not do for a buck, but I want to make good money on the jobs I take on!!!

Right On!! I do sell to REALTORS® almost 90% of my Clients are REALTORS® they always try to beat you up on price. I find that if you hold your prices a good 75% of them will pay the price your asking. Those that won't pay decent prices usually are the bottom feeders that won't be around long anyway. At least that has been my experience dealing with them for the last 15 years.

 

[Pinfinity]

SM, no question on how you handled that! spinnin your wheels with that kind of work.

 

[visual800]

man talk about a group of people that can really waste your time and also do not respect your time. They are rude, arrogant and impossible to deal with....but lately they have mostly been killed off one by one, Im sure they will be back though

 

[FrankenSigns.biz]

Most realtors work for free half the time. Why should they expect anything less from us.

 

[Craig Sjoquist]

Sure glad they are not my customers, have enough problems with car dealers in holding my price.
There is enough price killers with those Coroplas yard signs, you think that they work for nearly free.

 

[10sacer]

Real estate signs

I very rarely do coro signs. Its the newsprint of this industry and it's like self-adhesive vinyl - anybody in the sign business can do it.

If I do quote it - I quote such that if I do get the job - then I will make money for the effort and then I usually get some guy who says they can find it cheaper on the internet for .69 a square foot and I say, "Then why are you calling me?"

There are several sign companies in our area that are really hurting because they got so tied to an industry that has taken a major hit in the last 2 years and didn't diversify their types of clients. Its an easy trap to fall into when things are going good - but business 101 is that things aren't always good.

 

[Gino]

I'm with ya, SM.

However, I do one thing different. I actually give them my pricing. Believe it or not, some of these people still buy based on service and not just price. I have a few that are paying the rate I choose and we're doing quite fine. I won't go into the numbers out here, but suffice it to say, our realtors will pay.

I gave one guy a price on buying 25pcs 4' x 4's and 15pcs 4' x 8's and they turned me down, but insisted on paying as they go. They didn't want to overextend themselves. I'm glad they did it their way. In less than a year, we've done over the 25 4'x 4's and maybe 1/2 of the 4' x 8's and we didn't have to give a discount.

 

[SignManiac]

It would depend on how the conversation goes with me. In this case, I knew they were looking to go as cheap as they could find, so I knew it would not be worth it for me to waste my time quoting them. I never plan to be competitive with the locals around here. I stopped doing that years ago and it was the best thing I did. My focus is on the more profitable jobs and I don't ever want to have to take away from those. The day I lose those jobs is the day I find another profession. I know that too many shops these days are in desperate need of work and will lose money to get anything at all. (Not you Gino, I know you're running you business well). But I won't let the customer dictate what my business is worth. Never have, never will.

 

[FrankenSigns.biz]

I know that too many shops these days are in desperate need of work and will lose money to get anything at all.

It boils down to people who are in business for themselves that can't grasp simple math. If you lose $1 here and a 50¢ there, you'll never make up for losses with volume, you'll only compound the problem.

My overhead is almost nil compared to many shops in Charlotte. Plus, I own every piece of equipment here—outright. I have no debt whatsoever so I am in a pretty good position to be competitive. But it still amazes me what some customers say.

Just this morning I had someone ask me if I could beat 2¢ a copy. If he found some copyshop to sell him copies for 2¢ why in the world would he call me looking for a better price? It boggles my mind.

 

[Bigdawg]

We have a shop around here that does only real estate signs. Works for him and he even makes money doing it - not a fly-by-night at all - well established sign guy.

But he gives them what they want. Cheap signs, installed cheap... even reusing old signs with new price or new associate pasted over it. With his method and the way his work flow goes, we can't - and don't - try to compete with him. We see it as a totally different market and production process.

 

[GP]

It's funny - when I first introduced myself to Signs101, I expressed that part of my business plan was to attack real estate professionals and developers from my previous life in home building and real estate. Boy, was that a waste of time...

Can I get a "I told you so" from the choir...Amen!

 

[Gino]

Right now, we have one of the largest real estate companies in our area putting together a proposal for us. The guy came in between Chrsitmas and New Year's and said they wanted to look into our being their sign shop. They needed to make a change for the new year. They have three separate shops doing their work because of volume and I reassured him we could handle the entire load.

I told him right off the bat, like you SM, we're not gonna be the cheapest guy on the block..... in fact the area, but we are the most reliable and sometimes the fastest turnaround and best bang for your buck in that respect.

He has his girl in the office putting together ALL of their sign invoices for 18" x 24" to 48" x 96" to the community site signs [usually the sandblasted or carved signs]... along with all of the installation prices. We just took over another real estate company about a year or so ago in this same fashion.

I really like it when they come to us with their prices and all I have to do is figure out what it's worth.... and make a quick counter-proposal.

Although we probably won't be doing any vinyl cutting or applying and saving material and monkey labor, our prices will still keep us very competitive while making a very nice profit.



Something for everyone here to remember...... these real estate agents, builders, and developers are all in the same boat...... TIMES are TOUGH and they need to save money. However, in spite of saving money, they still need quality. They are trying to stretch their advertising dollar as far as they can without overextending themselves. Talk to them using terms like value, cost effectiveness, long-term, durability, money wasted and low-end quality and having to replace things constantly. Using these terms in the right sequence can land you a job.... [a good paying job], just when you think it's not worth it. You can't make a sale, if you already have it figured it's not worth your time. Some of our biggest customers started out slow and easy and have become huge money making accounts and in some cases.... even good friends.

 

[Almonte]

A little off-topic, but...

When selling the 18"x24" real estate signs, do most realtors already have their own posts?

If not, do your sell them the post, or rent them for a period of time?

How much do you charge for installation, and removal?

What do you usually make the sign panel out of? pvc sheet? MDO?

In general, is it cheaper to screen print or digital print, nowadays?

Thanks for sharing any info.

~John

 

[John L]

Bob, You made the smart move. Looking back, I'll admit I never used to say no to anything and I spent so much time spinning my wheels on little or no-profit nonsense that just tied me up, or wore me out, so much I didn't have the energy to recognize a decent oppurtunity. In the last several years I have turned down or referred away enough business to keep a decent sized vinyl shop very busy.

A funny RE sign thing... I recently returned from a business trip and I noticed my shop guys had made a little real estate For Sale sign setting out front for a customer to pickup. I immediately lashed out and told them how we cant stop work on higher margin projects to make a single For Sale sign. My right hand guy says for me to be sure to be here in the afternoon when the guy picks it up.... Because they are asking $20,000 for the house thats for sale!

So my curiosity keeps me here... and I then follow the guy to the house cause I have to see this... and it's a hot dump, but it's definately worth $20K. We go to settlement the end of this month. The new guy here is going to be my tenant after I give this place a little TLC.

 

[Locals Find!]

A little off-topic, but...

When selling the 18"x24" real estate signs, do most realtors already have their own posts?

If not, do your sell them the post, or rent them for a period of time?

How much do you charge for installation, and removal?

What do you usually make the sign panel out of? pvc sheet? MDO?

In general, is it cheaper to screen print or digital print, nowadays?

Thanks for sharing any info.

~John

If you don't know how to make price out or install a real estate sign. Your in the wrong place. Your more than just a little off topic. Your asking someone to give you their business.

 

[TheSnowman]

I have a love/hate relationship w/ them around our town. I've done work for most of them at one point or another. One had this giant job that I quoted and basically told me I had it, then I couldn't ever get a hold of her, or hear another word. Yesterday she dropped off some stuff she needed done, and just said do it, so that was nice.

I have two Real Estate/Auction company's that are basically my bread and butter. Without them, I'd probably be moving my equipment to my garage and working somewhere else because since I bought the business, I acquired their work, and I slowly adjusted my life to fit the new income that those two provided.

I'm only a one man shop, but I treat these two company's like kings. Dropping stuff off, picking it up, dropping what I'm doing to work on their stuff, or go over to their office to talk to them. I have a great relationship with all the owners and workers at both places, and we have fun doing business together. Neither of them really ask for pricing on anything unless it's just a HUGE project.

Just goes to show, the good ones do still exist, but you really don't know until you talk to them.

I was on vacation one week, and they are used to getting stuff same day from me most of the time, and I wasn't going to be back in time to take care of them by their deadline. Every worker I've seen since then (and the owner) has just talked about how well I take care of them, and how much of a hassle it was to go back to their old company for that ONE sign. People still value you taking care of them, so don't be afraid to go the extra mile every now and then...sometimes you'll be surprised.

 

[Almonte]

If you don't know how to make price out or install a real estate sign. Your in the wrong place. Your more than just a little off topic. Your asking someone to give you their business.

This is signs "101", isn't it? I don't expect everyone to disclose every detail of their business, but I thought the purpose of this forum was to share information and to learn from others.

And unless everyone here has a market in the East Bay of the San Francisco Bay Area, I highly doubt I'd be a competitor.

 

[10sacer]

A little off-topic, but...

When selling the 18"x24" real estate signs, do most realtors already have their own posts?

If not, do your sell them the post, or rent them for a period of time?

How much do you charge for installation, and removal?

What do you usually make the sign panel out of? pvc sheet? MDO?

In general, is it cheaper to screen print or digital print, nowadays?

Thanks for sharing any info.

~John

Most realtors do not have their own posts, but some have their own frames - 2 different things.

Asking for pricing here is pointless if the answer isn't coming from someone less than 100 miles away from you - and then why would they answer anyway? I am sure it costs (or is worth) way more to install something in California than it does in North Carolina or Texas.

See an earlier post about using PVC outdoors. Around here we use .060 or .080 styrene. But we are doing frame signs - not post signs.

Its always cheaper to screenprint - depending upon quantities and if there is a need for personalization for each sign or a small number of signs - then you would go digital.

We're not all pretentious here... You asked... I answered... its not that hard

 

[Locals Find!]

This is signs "101", isn't it? I don't expect everyone to disclose every detail of their business, but I thought the purpose of this forum was to share information and to learn from others.

And unless everyone here has a market in the East Bay of the San Francisco Bay Area, I highly doubt I'd be a competitor.

I am not saying you shouldn't ask questions. However, something as basic as a Real Estate sign and how to price it is pretty elementary stuff for someone in the sign business.

Really, are there no Real Estate signs in your area?? Stop at one take a look at what its made out of, how its made, talk to local agents about their needs. Then come back and ask something more specific. Like whether or not a particular material is good for a particular purpose or what are your thoughts on this particular frame system.

That is all I was trying to get across to you. I will be glad to help you with a specific question but, I am not going to tell you how to make a real estate sign and what to charge for it.

 

[SignaramaFL]

A little off-topic, but...

When selling the 18"x24" real estate signs, do most realtors already have their own posts?

If not, do your sell them the post, or rent them for a period of time?

How much do you charge for installation, and removal?

What do you usually make the sign panel out of? pvc sheet? MDO?

In general, is it cheaper to screen print or digital print, nowadays?

Thanks for sharing any info.

~John

Its kind of 50/50 if realtors have them here. But you can also get something like this from home depot which I know some do...

We don't install these ourselves, mostly the agent does, because well it's cheaper for them that way.

The sign itself can be made out of a few different things, Aluminum, Max Metal, Coroplast... ect.

If its large quantities screen print, otherwise we digital print them....

Hope this helps some.