Years ago, the rule in all sign companies across the country and pretty much around the globe was… everything was based on an hourly wage of a hand painter, plus his materials and overhead as was all the other signs being made in the facility. Yes, years ago we were referred to as sign companies, not shops. That term came along in the 70’s and 80’s, as more and more people went out on their own and couldn’t do it all. When silk screening took the monotony out of large runs, it was a welcomed sight and everyone jumped at getting this new technique into their shop. Later on, specialty shops sprung up and started specializing in screen-printing, neon, pylons, sandblasting and so on. In the 80’s as we all know, the computer came along and started a whole new way of thinking from the fabrication to the way we price things. The whole norm for everything for some 100 years or more was upset in a few short years. This is called progress [gradual improvement or growth or development] and I have no problems with progress. The computer has improved many areas and has saved countless hours in our facility and many others that I’ve seen over the years. There are people that have God given talents that need the computer to get their thoughts out and others that need them to help them get many jobs out the door faster. To whatever extent, the computer has been a real helpful tool.
The area that I think most people at this site, other sites and all around the world have with this tool is, that a standard was set up over decades of how to price our work and this machine has fooled people into what signs are really worth vs. what they can get for a sign or truck lettering job… regardless of the method being used. We’ve lost sight of the true value of our profession and have let people totally unaware of these conditions make the rules.
We used to figure what it would cost to do a sign, banner, truck door, etc. by hand, then the computer made up for mistakes, brush strokes, hair in the paint and many other incidentals and got the jobs out faster. Why would you charge less to get something done, when you paid a lot of money for the apparatus that did it ?? Well, back then, no one did that. We charged accordingly and made a better profit. We went from having a backlog of 3 three to four months down to about six weeks. We had seven hand-painters, screen printer and two of us were also wall dogs and pictorial artists. We still priced out based on our hand-level skill. As more and more fast sign shops and other backyard mechanics came onto the scene, undercutting everything, we had to adjust our pricing. The nice thing is, we didn’t drop our prices… we just added a lower end type of signs to our list which when people saw the difference, it wasn’t at all hard to up-sell them.
So, as OP and others have said, we still price out at what the product is worth, we just let the customer decide which level of signs they want.
Stands to reason:
1. 3’ x 8’ blank banner costs about $25.00
2. Average paint and time to hand letter about $50.00 @65.00per hour
3. Total about… $75.00 including labor
1. 3’ x 8’ blank banner costs about $25.00
2. Average vinyl, weeding, tape and time to apply about $65.00 @65.00per hour
3. Total about… $85.00 including labor
Not much of a difference in my opinion. Any decent off the brush painter can do a banner in under an hour and any vinyl jockey, about the same. If you have the talent for either way… it’s a no-brainer.
A thimble full of paint or a pound of vinyl ??
Digital is the same story, just more recent. They pay for the end result in most cases.