By signcraft
Posted on Monday, July 24th, 2023
Very often the customer who arrives at a sign company needs more than just a sign. They may need a logo design and help with branding. They may need uniforms and caps or other promotional items. That’s why many sign companies have moved beyond providing signs exclusively. Some, like Doug Downey, The Image Factory, Stratford, Ontario, Canada, have even repositioned themselves as graphics companies.
“One of the problems with our sign industry from a business standpoint,” says Doug, “is that once you make a sign for a customer, you often don’t see them again for four or five years—or longer. A well-made sign can last 5 years or more. One of the first storefront signs that I hand lettered 37 years ago, for a local shoe store, is still there and in good shape. “
As a result, there is little opportunity for residual income from most sign customers. You letter their truck then may not see them for five years when they get a new one. The solution is to position your business as the source for all of their advertising and promotional materials—including their signs.
“In my early days in the sign business,” says Doug, “it bothered me that I would design a logo for someone’s sign, then for years later they would call, asking for the file because they were getting t-shirts or pens or business cards done elsewhere.
“I realized that these were all products that I could easily offer as well, so I found sources for these items. Now when customers call for the file, I say, ‘What do you need? Shirts and caps? Sure, I can do those for you.’”
Easy to sell
It’s often just a matter of asking sign customers what else they may need. Doug once did a logo for a man from an agency that offered training programs for young people. As he was leaving with the design, Doug asked him what he needed the design for. He said he needed it for stationery and some pencils to start.
“I told him I did those, too. He seemed surprised. From that point on, I did loads of work for him—flyers, banners, t-shirts—but relatively few signs. It all came from simply asking him, ‘What else do you need?’
“It can get a little crazy because you sometimes have to track down sources for what people want, like old-style trucker’s caps. And you also are getting in these orders from various sources, and you have to get them to the customer. It takes some organization and coordination. But it is profitable work—especially when they reorder the items again and again.”
Doug says there also seems to be less resistance on price for these promotional products than there is for signs. A customer who is reluctant to spent $2000 on a sign may not think twice about buying $5000 worth of t-shirts.
When you outsource, you function much like a retailer who buys products at wholesale, marks them up, then sells them to the customer. That’s different from most sign work, where the sign company makes the product then sells it to the customer.
“The markup is two to four times on most of these products,” Doug says, “and even more in some cases. There’s usually not much involvement on your part. You take the order and get the deposit. Then you send the files, receive the order, then call the customer to pick it up. In many cases, I ship the order directly to the customer.”
Getting a deposit that covers the cost of the order is an important step. These are custom items and have no value to anyone except the customer. The deposit protects you from customers who don’t follow through.
Equipment and staff are expensive
If you want to produce t-shirts, CNC-routed graphics or even digital printing in-house, you have to consider if you are going to have enough volume to justify the cost or the lease payment for the equipment. Will you need to add staff to run the equipment? It can be very hard to find competent help.
Outsourcing gets you around all that. You handle the sales and design, then a wholesaler handles the production of almost any type of sign or advertising product. It frees you up to do what you do best.
“I outsource everything,” Doug says. “I have an embroiderer, a screen printer, and a printer who does my corrugated plastic signs and banners. I buy stationery and promotional products from another company. I concentrate on selling signs and related products and doing vehicle graphics in the shop. If it’s not a vehicle project, someone else handles the production.
“When you’re a one-man show you don’t have time to do all the fabrication for every type of sign. Making banners is a good example. Why hire a helper to hem and grommet banners when your wholesaler will do it for you?”
Granted, outsourcing signs can get challenging when the customer has a rush job. Anymore, though, Doug doesn’t take these jobs if the deadline is too tight. He explains when he can have the job done and that it’s the best he can do. Most are willing to wait, but if not, they have to find another source.
Garments and promotional items
With a little research you can find reliable sources who can produce almost any promotional item you need at very good wholesale prices with great service. Because there’s little involvement on your part and good markups, outsourcing makes a lot of sense. The natural first step is stationery—business cards and letterheads that most businesses use. Then it’s on to promotional items.
“I outsource printed shirts, caps and jackets,” Doug says. “Many customers like these but don’t have the time to track down a supplier, find their logo and get them ordered. I take care of it all for them. If it’s a very short run—say six shirts—I have a supplier who does short run direct-to-garment printing. It costs hundreds of dollars to set up screens for a four-color t-shirt run, but you can get six t-shirts direct printed for well under $20 each.”
Outsourcing digital printing
Doug has a printer in-house, but he outsources a large part of his digital printing work. For the most part, he prints wrap graphics or stickers in-house. Everything else is outsourced because it is usually more efficient.
“For example,” he says, “direct printing on corrugated plastic is better outsourced in my case than doing it in-house. It allows me to be competitive in the real estate market and have the work still be profitable. I create the design and email it to my provider. The signs show up a few days later, and I call the customer to pick them up.
“I do yard signs as 24-by-16-in. as my standard size. There’s less waste. If they want 24-by-18-in. signs, there’s an up-charge. But 24×16 lets me be more competitive. Most customers don’t want to spend extra money for two more inches in height.
“Banners are handled the same way. I do the design or sometimes the customer provides it. Either way, I email it to my provider, and it arrives a couple days later. I don’t even open the box—I just let the customer know their banner is ready for pickup.”
When he has multiple signs direct printed on a substrate, Doug lays them out on the 4×8 sheet. He includes the dimensions for each sign, and the wholesaler cuts the finished signs from the 4×8 and sends them back.
If you’re in a small town, it’s even more beneficial to provide advertising and promotional materials along with signs. There may not be enough sign work to be done in your market to support your sign business. Providing these additional services can make the difference between surviving in business or not.
