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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:

The causes come down to five things:

  1. Labor left off. Design, proof rounds, file prep, finishing, loading the van, travel and install.
  2. No real shop rate. An hourly rate picked to sound fair, not one worked out from overhead.
  3. 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%.
  4. No waste allowance. Offcuts, misprints and test prints are real cost.
  5. No minimum. Small jobs carry the same setup and customer time as big ones.

Step 1: work out your shop rate

ItemExample
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.

LineWorkingCost
Coroplast sheets2 × $18.00 × (1 + 15% waste)$41.40
Ink64 sq ft × $0.25$16.00
Print time0.8 h × $40/h$32.00
Design and proof0.5 h × $65/h$32.50
Grommets and finishing8 × $0.10 + 0.25 h × $50/h$13.30
Install, including travel1.5 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

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.