August 18, 2015
How to Increase Your Gross Margins
How to Increase Your Gross Margin
Many clients have asked us how to obtain better margins on their channel letter (and other signage ) sales. Here is the best way.
Show that your signage business offers more value than your competitors. Many signage companies base their bidding only on price. Don’t make that mistake.
Your gross margin will never increase if you continually get into bidding wars. Better to position your company as the candidate that offers the most value, and justify your higher price through that value.
Some of the ways to exhibit value are: * Accessibility * Better installation quality * Longer warranty * Greater signage knowledge * Faster service * Constructive counsel on sign types, configuration and placement * Reliability
Don’t pursue customers who buy only on price! Remember, not all customers do. Some buy on value. If the value perception of your company is greater than your competitors, your higher price is justified. Back up that perception with excellent service and you have justified your higher price and increased gross margin.