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Neon Pricing
Fellow Tubebenders and businessmen,
I would like to address the subject of neon costs, as well as warranty
periods.
Here in Columbia, SC, the neon market is very competitive. There used to be a
neon school here, which apparently had very low standards. Many people
learned to do basic glassbending (channel letters, mostly). These benders
either opened shops or went to work for others, doing some of the ugliest
bending you've ever seen. The unsuspecting customer (price shopping) buys the
cheapest neon he can find, and ends up with an ugly sign, which often needs
servicing 3 to 6 months later.
Due to the current neon environment, prices in this area are probably
artificially low. However.....this is how my pricing usually runs:
STRAIGHT BORDER TUBING -- INDOORS OR OUTDOORS -- $10/foot, including
transformers and installation -- I have a really hard time getting this price
in town - mostly out of town customers pay this price - in town I'm lucky to
get $8/ft.
WINDOW SIGNS -- I usually sell these for $20/letter (block or script) plus
$60 to $75 for a window transformer. Generally, all my window signs are
mounted on 1/4" plex (no charge), using QS-1 tube supports (screwed, not
glued -- for minor adjustments), and Diversified caps and shortstops.
Transformers are mounted on the back of the plex, so the sign hangs with jack
chain and just plugs in. If the sign has more than 6 or 7 letters, I usually
end up taking a little off the per-letter price. Also, I will usually throw
in a border for free. A sample of this pricing would be -------- 'FLORIST'
-------- 7 letters (10") x $20 + $60 for transformer + free plex + free
installation = $200. I usually install all my own work (at no additional
charge) since I hate doing repairs.
WHOLESALE WORK -- I have pretty much quit doing wholesale work, since it pays
so little here. Prices range from $2 to $2.50 per foot for border tubing, and
about $10 per letter. At these prices, I supply the patterns, materials (any
glass except classic colors), bombarding and pumping, and blocking out of the
units. I guess if I had a steady flow of wholesale work, It would be
financially feasible, but the market is very sporadic. Plus, every wholesale
customer wants it YESTERDAY! I have a hard time justifying putting a $50
wholesale job ahead of two weeks worth of retail work.
SERVICE CALLS -- I really go back and forth on this one. For good (regular)
customers, I will occasionally do a minor service call free, or very cheap,
just to keep them happy. Usually, I try to get a base of about $40 to $50,
considering service calls often involve two trips. From there, it just
depends on what the problem is. Retail neon repairs start at about $20.
WARRANTIES -- I have been giving a one year warranty period for as long as I
can remember. Lately, I have been considering dropping that to about 6
months. Most people around here give about a 30 day warranty. I know that
sounds ridiculous, but as someone mentioned previously, where can you buy
anything electrical with a warranty longer than about 90 days? If it's good
enough for GE, it's good enough for me.
Not that I have a lot of warranty work to do ... it just seems that we, as a
group, give our customers a hell of a lot for their money. We must realize,
everything we do is custom-made. It's physical work...standing on our feet
all day (and all night about 3 times a week), and climbing ladders and
crawling in ceilings to do installations. We work with toxic chemicals,
hazardous high voltage electricity. We get cut, burned, shocked, poisoned. In
addition, we must have the equivalent of a college degree, usually in the
form of an apprenticeship, school, experience, or a combination of all the
above. We must know enough science and technology to keep abreast of current
trends in the industry, and supply our customers with a good product that
will usually outlive their business. I just think we ought to be better paid
for what we do.
This is one of the reasons I don't like doing wholesale work. We spend 1/3 to
!/2 of the price on materials (glass, electrodes, propane, rare gases,
mercury, transbestos, paper, screen, etc.) which means we make very little
profit. The retailer actually makes MORE on our product than we do, and all
he usually has to do is take the order and deliver the product. In my
experience, the guy that sells the sign does no installation, and often
offers no warranty. I think that the craftsmen, the men and women who have
developed the skill to actually make this stuff, ought to be the ones getting
the big bucks.
I do virtually all my designs and patterns on a $2000 computer, using several
thousand dollars worth of software. I've invested another $6000 to $10000 in
equipment and glass, electrodes, pattern paper, transbestos, etc. I've got a
couple of thousand more in installation tools, ladders, diagnostic equipment,
etc. All this in addition to the truck and van I use to carry out my
business. I've got shop rent, business phone bills, overhead, upkeep,
licensing fees, etc.
What all this boils down to, is that I need to charge $30 an hour for my
time, just to bring home a paltry $20,000 to $25,000 a year (That's for
working 60 to 80 hours a week). And everyday...EVERY day...I get to hear
people whine about paying my prices, since they can go across town and get it
for 15% less. Just today I lost 1 regular customer and 1 new customer,
because I tried to get $8 a foot for border tubing. I should be ashamed of
myself, trying to rip off people that way!
I pride myself on doing the best work in town, possibly in the state. I am
extremely picky about the quality of work that leaves my shop, and I offer
the best warranty in this area. I do safe, high quality installations. I have
learned through experience what works, and what doesn't for various
installations. I don't skimp on time, and I use only the highest quality
materials I can get.
However, things have gradually gotten better. Lately, I have been turning
away some of the less desirable work, and I have managed to cultivate a
fairly steady base of quality oriented clients. But it's been a constant
struggle. This business runs my life. I spend at least 14 to 16 hours a day
here, most days. I've got to be available 24 hours a day for service calls (I
often get calls after midnight, and before 8 AM). I have to travel the entire
state, just to keep enough good customers, since I have so much competition
in town.
On the positive side, I have a pretty solid 2 week backlog of work at any
given time. And I have developed a short list of very faithful, very steady
customers, who wouldn't even think of going to anyone else. Also, I just
bought a Roland Camm-1 (pnc1000) vinyl cutter to use in conjunction with the
computer I already have, so maybe I can further weed out the less desirable
accounts. If anyone out there has any tips on running this machine, or the
vinyl business in general, I would be grateful.
I hope this information has answered some of your questions, and maybe raised
some others. I apologize if I seem a little jaded, but I really think we need
to band together and get decent compensation for what we do. Let's not cut be
so cutthroat with our pricing. Just concentrate on doing quality work at fair
prices.
Ronnie Downs
The Neon Guy
P.S. I may be in Rochester, NY, in the next week or so. One of my customers
needs some work done there. I would appreciate any recommendations on who to
call in case I need a repair or new unit while I'm there. Thanks!
P.P.S. Has anyone else had problems with Franceformer 15030 PKA2 transformers
burning out -- usually arcing through the tar insulation directly to the GTO?
The problem only seems to occur with the older version -- the one with the
vertical thumbscrew. The newer ones, with the horizontal thumbscrew, seem to
be ok. Just curious...
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