How to stop underquoting sign jobs
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To stop underquoting, price every job from the same written recipe instead of from memory: materials with waste, every labor step at a real hourly rate (design, print, finishing, travel, install), your markup, and a minimum. Then keep material costs current and check margins after the fact. It depends on your shop how much software helps. A careful spreadsheet does the job for a few quotes a week. A Price Book that does the math for you helps when you quote every day or your supplier prices move often.
Why shops underquote
Owners say it plainly:
- "i spend hours on quotes and by the end i feel like im pretty much guessing everything." (a sign maker on UKSignboards, 2025)
- "Sign pricing dies on unaccounted labor and consumables, not on bad arithmetic." (a Signs101 member, 2026)
- "You already have two of them and you need to do the hard part (overhead calculations) to make any software work." (a Signs101 member, 2016)
- "Of course if they need a proof or they are talkers you have to add labor." (a Signs101 member, 2022)
The causes come down to five things:
- Labor left off. Design, proof rounds, file prep, finishing, loading the van, travel and install.
- No real shop rate. An hourly rate picked to sound fair, not one worked out from overhead.
- Old material costs. Prices go up. A Signs101 member reported an Oracal 751 roll going from $210.50 to $243.50 in 2018, about 15%.
- No waste allowance. Offcuts, misprints and test prints are real cost.
- No minimum. Small jobs carry the same setup and customer time as big ones.
Step 1: work out your shop rate
| Item | Example |
|---|---|
| Monthly overhead (rent, utilities, insurance, software, loan payments) | $3,500 |
| Monthly wages, including your own | $4,500 |
| Total to cover | $8,000 |
| Billable hours a month (not total hours worked) | 160 |
| Break-even shop rate | $8,000 ÷ 160 = $50/h |
These are example numbers. Use your own. Machine time (a printer or router) can get its own rate.
Step 2: price from a recipe, every line
Example job: two 4×8 ft coroplast signs with grommets, installed. All costs are example numbers.
| Line | Working | Cost |
|---|---|---|
| Coroplast sheets | 2 × $18.00 × (1 + 15% waste) | $41.40 |
| Ink | 64 sq ft × $0.25 | $16.00 |
| Print time | 0.8 h × $40/h | $32.00 |
| Design and proof | 0.5 h × $65/h | $32.50 |
| Grommets and finishing | 8 × $0.10 + 0.25 h × $50/h | $13.30 |
| Install, including travel | 1.5 h × $85/h | $127.50 |
| Total cost | $262.70 | |
| Markup 60% | $262.70 × 60% | + $157.62 |
| Price | $420.32 |
Quoted from memory as "two signs, about $250", this job loses money once the install is counted. The install line alone is almost half the cost.
Step 3: set a minimum
Shops on Signs101 describe minimums such as "Minimum of $75-$125. Installed would be minimum of $175." (2022). Pick yours from your shop rate and the time a small job really takes.
Step 4: keep costs current
When a supplier raises prices, update the material and every product that uses it the same day. Quotes you already sent should keep the price you gave.
Step 5: check after the job
Compare the hours you quoted with the hours you spent. If install keeps running over, raise the install hours in the recipe, not just the price of one job. Look at margin by product and fix the ones that are low.
How Grommetbook helps
- Your recipe lives in a Price Book: Materials with waste %, Rates for each kind of labor, and Products with markup, minimum and options such as install or grommets.
- Your AI assistant asks for a price; it does not make one up.
price_productanddraft_quoteuse your Price Book and show each step, so nothing is left off. - "Oracal raised 751 by 6%" reprices every Product that uses it with
reprice_materials. Sent Quotes stay frozen. - The read-only viewer shows cost and margin per Product and flags margins under 40%.
What you give up: no time tracking or production scheduling, so the "check after the job" step is still yours.
Try it
Connect your AI assistant to https://grommetbook.smallwright.com/mcp and give it your rates, materials and minimums. Steps are on Connect your AI.
Questions
- What is the most common reason sign jobs are underquoted?
- Labor that never makes it onto the quote: design, file prep, finishing, travel and install. Material costs that are out of date and missing minimums come next.
- How do I work out my shop rate?
- Add a month of overhead and wages, then divide by the hours you can actually bill. For example, $8,000 ÷ 160 billable hours is $50 an hour.
- Can ChatGPT or Claude price my sign jobs?
- An AI assistant on its own does not know your costs and will guess. In Grommetbook the assistant only sets up and uses your Price Book; the prices come from your own Materials, Rates and markups, with every step shown.
- Do I need software to stop underquoting?
- No. A spreadsheet with the same recipe for every job works. Software helps when you have many products or costs change often.