This is our 20th year of being a home-based business. We could "dance" around the big shops. We knew their weaknesses and played that market angle.
Now lets all brainstorm and target the weakness of the Franchise Shops. Homebase shops can survive....but we have to correctly target the customer.
THIS IS NOT A POST TO SLAM A FRANCHISE SHOP
Your imput should focus on creative ways to "beat" them at their own game...
So, I'll start off with some things that work and you keep the thread going with your constructive ideas, and observations.
1. Remember that old proverb: Price, Service, Quality...pick any 2 We are re-thinking that approach. While the FS shops dump loads of money in advertising...we don't. We can channel that savings into the "price, service, quality...you can have all 3"
2. FS shops look neat and clean. Does your home look neat and clean, dishes done, toys picked up? Tidy work area, scraps out of site. The home needs to project a very "family" look, with very interesting signs on the walls....way overdone signs, with loads of color, intricate details....the kind of sign most customers wont order, but need to know you have the ability and power to turn out that great work!
3. Availability! FS shops have to close for the night or weekend. Thats when we do most of our truck and van lettering! We tell the customer "don't take your truck out of service...go make money with it...we'll work on it tonight and have it ready in the morning!" Or something to that effect works well for us.
4. Cut Expenses....do you really need that cell phone? Are there others areas you can cut back on to boost your cash flow? Rethink your phone book ad....we got rid of ours! And it has not hurt us a bit, mainly because there are better ways to reach the customer.
5. Letter your vehicle up with the best lettering you can turn out....order digital prints if you don't have the gear, and put full color digital graphics on it! make magnetic business cards up and stick on you vehicle, then park it in front of the donut shop, lumber yard, Hooters, just get it out there in front of the eyes of the contractors.
6. Go the extra mile! We print up Nascar Winston Cup race scheduals, place them on magnetic sheeting, and give them to our best customers. Of course they have our logo on them. They are about the size of a half sheet of copy paper. Take a $6 clock, place the customers logo on it, and surprise him with it when he picks up his truck, or his signs! (add the price in on the job...but don't tell him that!)
7. Work toward buying/leasing faster plotters We took the plunge and leased an Edge 4 years ago, which for a home based business was pretty scarey...and its paid off! Selling stickers, decals to our base customers has opened a total new market and income. Recently we took another plunge and leased the Oddessey Plotter...32 inches per second cut speed...48 inches wide. Now we can regain the 4x8 quickie project sign market. You simply have to get faster if you want to survive!
8. Network with other home-base businnesses! We have become good friends with a home-based engraver and a home-based embrodiery business....we now sell for each other to gain new customers....I get golf shirt work and send it their way...they send me their signs....works for us!
How about the rest of you filling in #9 to #100?
Remember, keep the ideas constructive, FS shops are not the enemy...but by their mode of operation...we can find the weakness and "dance" around them!
Looking forward to your input! Thanks for sharing!
------------------ Go Get 'Em..... :) AKA Raptorman on #Letterheads mIRC Chat Draper The Signmaker Bloomington Illinois USA
Proud 2-yr. $upporter of this Web Site (May 1999-May 2001)
Posts: 2883 | From: Bloomington Illinois USA | Registered: Nov 1998
| IP: Logged |
posted
Good Morning Dave! Wow! You have lots of great ideas.....I am homebased also. However I have found (in my case) that with a cell phone I don't miss any calls. I like to go to customers place of business, and deliver all signs. Therefore, I have my cell phone number as my sole business number. When I had my shop, I was missing lots of calls, when I was away from the shop. I guess I would just like to add....BE Friendly!! I have gone into a few franchises, and geez, they had some bad attitudes going on....but I guess we all need that advice once in awhile........(except Mark Fair) That dude is ALWAYS happy!! I love it!
------------------ Cheryl Nordby "surf" signs by Cheryl! "surfsigns" a hop and skip from Seattle surfsigns@excite.com
posted
Dave, Excellent ideas. I'm not home based any more as I built a shop last year. But alot of your ideas are being used in my shop. It just makes good business sense to run a tight ship so you get your share of business.
Sorry I have nothing to add to the list, but I do have one clarification.
I heard the old proverb to be Low Price, High Quality, Fast Service... pick any 2. If thats the way it goes I'm sticking with it.
But I'll agree to go with all three if it were to read: Fair Price, High Quality, Good Service
------------------ Dave Sherby "Sandman" SherWood Sign & Graphic Design Crystal Falls, MI 49920 906-875-6201 ICQ: 21604027 sherwood@up.net
[This message has been edited by Dave Sherby (edited March 10, 2000).]
Posts: 5396 | From: Crystal Falls, MI USA | Registered: Apr 1999
| IP: Logged |
posted
You say they are not the enemy? but you directly target them, or large shops ? Isn't there enough buiss. to go around ? Certainly, one companys abilities vary from another, you attract customers based on that ! why attract them for the same reasons another shop uses ! I always like to "stand out in a crowd" Roger
------------------ Roger Bailey Rapid Tac Incorporated Merlin, OR
You made some good points! This post was to zero in on how home base businesses ( the maw and paw shops ) can use creative thinking to boost business.
Unlike the FS, HB'ers have no organization to come up with radio and tv commercials, printed flyers, networking, discounts on sign supplies. Many HB'ers are newbies who could use some help putting dinner on the table.
The big shops are into High Rise and neon and the smaller 2-3 man shops have to keep the shop rate up to stay in business.
FS's rely on VOLUME low price....they consume and multiply...its a good business plan, it works!
Homebased shops need to project the "I'm your friend....I can solve your problem, let's go fishing after we get you truck lettered"....that kind of thing.
There are still many business that prefer to work with the "underdog", many other home-base type businees that would rather do work with like homebase shops. And there are many who are facinated with the fact you can make a living working from your home.
HB'ers need to identify and makrket to these.
If you are a HB'er it can get pretty frustrating to generate work at a fair price to pay the bills. I feel that pain...so I know other HB'ers feel that pain as well.
Please share your thoughts, ideas CAN make a difference!
------------------ Go Get 'Em..... AKA Raptorman on #Letterheads mIRC Chat Draper The Signmaker Bloomington Illinois USA
Proud 2-yr. $upporter of this Web Site (May 1999-May 2001)
[This message has been edited by Dave Draper (edited March 11, 2000).]
Posts: 2883 | From: Bloomington Illinois USA | Registered: Nov 1998
| IP: Logged |
posted
Hi Dave. Going to the customer's site to letter their vehicles is something that we promote as "part of the service". Truth is this is an area where you can save major bucks. If you letter that same vehicle in your shop, then, of necessity, you'd better have some form of liability insurance to cover any mishap while that vehicle is in your posession. By doing it at their premises, you can eliminate the need for that area of coverage. We found a savings of roughly $2,ooo a year...plus the customers have the perception that you're giving them better service.
------------------ Ken Henry Henry & Henry Signs London, Ontario Canada (519) 439-1881 e-mail kjmlhenry@home.
posted
It's been eleven years since we built a shop on the property where we live, and closed our shop in town.
We conduct business as a business that is seperate from our home life. We do not invite customers to come to our shop during non business hours. We do not work nights or weekends, except on rare occassions when necessary. We try to present an image of functioning like a business in town, and get that kind of price too. Presenting the image of working at home is like saying that you can work cheaper because the overhead is lower. I realize it's a hassle for them to come here, so I want to make it worth their while by doing my best, always trying to give a bit more than what they should get for that dollar amount.
As far as working on trucks at the location of the customer, I try to avoid that. I like having all the tools and ingredients here. I like listening to the jazz of my choice. I like it here, and of course there are exceptions.
Doing better work for the discriminating buyer is the market we target. Some of the vinyl and quickie stuff comes with it, because the customer that wants the carved ID sign also needs parking signs and we don't want to send them elsewhere.The parking sign is not the market target though.
The way to identify and target your market is another great subject.
------------------ The SignShop Mendocino, California "Where the Redwoods meet the Surf"
Posts: 6713 | From: Mendocino, CA. USA | Registered: Nov 1998
| IP: Logged |
posted
Perhaps I could add a slightly different angle to some ideas. I realize I'm no longer soley homebased although I also do work at home as well as my shop. Having done both, perhaps my angle can help.
Shake up the homebased concept! Show them that you don't work in your jammies. (if you do, keep it to yourself ) You are a professional, and you conduct biz that way too. Having professionally printed invoices, cards and stationery shout volumes and make you look like a large company. Avoid the home printed card syndrome. Professionals can spot them a mile away.
Professional Home Area What can be even more important than having all the toys picked up in the house is having a totally separate area from your household items for a more professional image. If your customer sees your setup and notices their artwork on your kitchen table beside their child eating, does that project professionalism?
Networking with other businesses Networking with home based businesses didn't work well for me personally. Normally their flow of work was low, therefore the referrals were lower. I even joined a home based business group and didn't find it inspiring. They were very chatty because they didn't have the personal contact of people throughout the day. I understood that, but I didn't want to spend time away from my family to chat. I tend to target larger companies that utilize my services multiple times a month. Day if possible. The print shop I soley use is huge. They in return send sign customers back to me. We don't ask for commissions, it's simply a referral thing. I realize that I'm not supporting the home based biz this way, however my bottom line is making money and because my time is limited, I have to be careful who gets it.
Exceptional Service Home based businesses tend to do more of everything. Delivering and going to the customer is more work, however that's what gave me such a good start. I targeted customers that were way too busy to do the running around themselves. They were too busy to crack open a phone book to shop around, so I always got the biz right then and there. Since going storefront, some of that has changed, however we've established such a good customer base that many even prefer to come to us now so they don't have to wait for delivery, etc. I do what's best for the particular customer.
Advertising that we are home based? I personally avoided telling customers I was homebased. When some found out I was, they wouldn't be interested any longer. When I found that becoming a standard pattern, I changed my technique, went to them, delivered to them, was in their face, they weren't in mine. I landed only one account when he found out I was homebased; he loved giving smaller businesses a chance. However, those customers were definately not the standard for me.
Great post Dave! I'll add more as I think of them.
------------------ Graphic Impact located in BC Canada gisigns@sprint.ca
Posts: 5630 | From: Yarrow, BC Canada | Registered: Nov 1998
| IP: Logged |
posted
Donna, I find that if I can get the customer here, they see the organization and investment and are usually impressed and want to trade here. Guess if I was showing them a garage it would be different.
------------------ The SignShop Mendocino, California "Where the Redwoods meet the Surf"
[This message has been edited by Rick Sacks (edited March 11, 2000).]
Posts: 6713 | From: Mendocino, CA. USA | Registered: Nov 1998
| IP: Logged |
posted
Being home based myself I feel qualified to input here. I have been homebased since day one and plan on keeping it that way for as long as I can.
Most customers that come to my shop say " nice setup". I have a nice brick walk going around my shop to the basement. It is all remodeled and I keep enhancing the grounds to look like a real classy shop & home. If customers would rather get fast food signs vs a nice cooked sign, then don't let the door hit you on the way out. I have a nice yellow page ad, what others pay in rent I pay for my nice ad. It works for me. I sell my work not so much where I make it. Even though a professional image is important.
I try to reach a differant type of clientel than the FS shops are going for anyway.
If it came down to complying to the FS way or quit, I'd say, see ya.
There I go getting grumpy again! I'm going to bed.
------------------ Bob Rochon Creative Signworks Millbury, MA bob@creativesignworks.com
"Some people's kids"
[This message has been edited by Bob Rochon (edited March 11, 2000).]
Posts: 5149 | From: Millbury, Mass. U.S. | Registered: Nov 1998
| IP: Logged |
posted
Ever try Business Networking International. They have increased our business by about 20%. Our chapter is a great place with positive people. You create a sales force of all of the other members. And you are also their sales force. Printers, accountants, graphic designers etc. They are all there and they are mostly home based.
posted
Very good posts...We are also homebased. Our shop is next to our house. It is completely seperate. We also have a very professional looking shop outside. When the customer comes into the shop the first comment is:"WOW...I never realized that your shop was this nice." I display several samples of signs also. We have a lot of antiques and other interesting items inside. I collect old signs from the area and have them stuck everywhere. Sometimes they ask for a tour and look at everything. This loosens them up and they always buy a sign from us. It is very important to portray a professional image wherever you go.
I have joined several business orginazations in town. A very excellent way to generate business. They want to help support each other. You need to attend as many meetings a possible to keep you face out there.
We work on trucks on the weekend so they can use it during the week. They really like this service. Bieng homebased we can take days off during the week if we need to.
I agree about your shop vehicle...mine is done in 23K Gold Leaf (real,that is.. ) It always gets thier attention.
We keep our prices up where we want them...the quickie shops are all cutting each others throats over price...We don't have any franchise shops here yet,,but I expect one soon...they will eliminate a lot of compitition. They tend to be somewhat ruthless...I WON'T play that silly ass game.
I still use the phone book ad...I still get calls from it...so I will leave it there for now.
other than that....We stay alive...and keep smilin'...that is always a great advertizement for your business.
------------------ Jackson Smart Jackson's Signs Port Angeles, WA
Livin in the Great Northwest!
Supporter Via the Auction
Posts: 1000 | From: Port Angeles, Washington | Registered: Jan 1999
| IP: Logged |
posted
Consider special insurance You can get a special insurance so you are able to drive your customer's vehicles. You could pick up the car at their work, bring it home to work on it, then deliver it fully lettered. What else could a busy customer ask for?
More mobile When storefront, you can't be as mobile as when you're homebased. So take advantage of that. Be seen alot, as this is your most effective advertisment. This is where it pays off doing work off your location and on the customer's site. You're simply seen more and get approached for more work. At a certain truck stop, it never failed. I would go letter one truck and ensured I had a handful of biz cards on me, because they were normally all handed out by the time I was done. I carry a mini sandwich board sign with my cards placed nearby, so if I'm high up on a ladder, looky loos know who I am and are welcome to a card. Signs really do work!
~~~~~~
Rick, you have an awesome shop. My point was the way some customers would get turned off when I told them my address... they stalled, then asked if I was homebased. That info kept some away. However if I could win them over and they stepped in my office, I had the sale too.
------------------ Graphic Impact located in BC Canada gisigns@sprint.ca
Posts: 5630 | From: Yarrow, BC Canada | Registered: Nov 1998
| IP: Logged |
Interesting topic, I was "homebased" for a very short period in the begining (less than 6 months) I felt in this country that I wasn't taken seriously.
I tend to go along with Ricks points except the jazz music I would like to in the future buy my own farm/smallholding, and build a sign shop that would work under business conditions etc.
Just now I rent a house on a farm and my workshop is 2 mins away on an industrial estate, I am for the most part a one man business, so dont know what of Dave categories I would fit into, I do take a fair price and give quality and service, I have too otherwise I would not survive I feel more threatened, by cheaper homebased than anything else as they have much lower costs, and can dump prices to get work, I think there are more restrictions here on using a residential premises for a business as well.
years ago I would work weekends for truckers etc to save them money and time...but with one broken marriage behind me and also with other interests in my life apart from making signs I feel the weekends are my time to recharge and take time out with my girlfriend, and our kids, often suffering from stomach ulcers last year I also take things at a more leisurely pace, I do not get stressed by customers bad planning, if there's not time i am not prepared to work all night to make them happy, I work from 8.00am until 7-8pm if it can't be done in those times time to ring Dave!
Seriously you have to have time out....why are we all here?
Sure find an angle on the competition, but competition in general, I personally dont feel threayened by anybody and there are 250 sign co's in Stockholm, as an englishman here I am already different and offer a different service and style to the homegrown.
Yellow pages is about the only "advertising" I do but find I should be represented but often its not worth the cost, then again..although most work here is mouth to mouth..I think its worth being seen amongst so many others too.
AS for investing in new equipment, I too have thought about an Oddysey so I dont have to stock 2 sizes of material, and pay the extra for tractor punching, but buy a fast plotter? How fast can you weed? I keep pretty good pace with my Sprint and GS 750 and they rarely go wrong, I am doing large semis as well.
I have always paid cash for everything, I haven't had any loans, I felt the pressure was off if you weren't having to keep your bank manager happy all the while or worrying about not doing that.
I would have thought the yellow pages was more important for a "homebased" shop who lack the storefront or industrial estate approach.
I think as most older generation signwriters, had just brushes and paint and could travel to whatever premises the idea of working from home was more acceptable but today, in this country at least you are taken more seriously as a proffessional shop for being just that in an working atmosphere, its so different around the world.
My biggest competitor here on the same industrial estate has gone bust 4 times the last time employing 7 poeple. He has now set up again from home bought 2 plotters and an Edge and called me asking if I was interested in buying from him?
Bust once...twice....but 4 times I reckon its time to stay down....personally dont know how he gets the finance for new equipment.
Good luck to you DAve and all the homebased, just charge a good price for a good job and don't undercut the market as an easy way to generate cash.
------------------ Henry Barker #1924 akaKaftan SignCraft AB Stockholm, Sweden. A little bit of England in a corner of Stockholm www.signcraft.se info@signcraft.se
Posts: 1552 | From: Stockholm, Sweden | Registered: Nov 1998
| IP: Logged |
posted
we have shop a little bit out of town. I do not have customers coming out to me, I go to them, I pick up all vehicles and do them out there deliver when done. I dont have alot of time to waste dealing with walk in I do not see how the hell some shops tolerate it. I would have to tell these people to get the hell out. How do justify wasting 30 minutes discussing a "for sale sign with #" maybe its me, I love being able to work without interuption of a phone, walk in! And 1 more thing I cannot stand to see a sign person in a damn oxford with slacksand pennyloafers. where is the paint on his nikes and levis!
------------------ if you wanted it tommorow...you should have called last week!
bruce ward visual images montgomery, al visual8@mindspring.com
Posts: 2033 | From: Montgomery, AL, usa | Registered: Jan 2000
| IP: Logged |
ErnieBalch
unregistered
posted
We may be somewhat different from the rest of you hard working artists. We have had a hard time making a profit in this business.
Fortunately, we have a second income, benefits, retirement and health care plan to support our sign making habit. Now if we only had some artistic skills!
I work full time as an engineer designing laser drilling and patterning systems for microelectronics packaging. The sign business was an accident. In 1993 I built a CNC router then wondered what to do with it. Signs seemed to be the easiest thing, they only have to look good, nobody puts them under a microscope and measures every dimension.
Diane started the sign business to finance our kids college education. It's taken a long time to find a niche where we can actually keep some money at the end of the year. It's so easy to keep buying new equipment, software, computers, plotters well you get the idea.
We have not experienced any problems being home based, people seem to expect it somehow.
Diane is a member of the local professional association and 2 chambers of commerce. This networking brings in some business and helps spread the word.
Our advertising is word of mouth, The yellow page ad pays for itself but does not bring in as much work as we had hoped. We started out by taking a booth at woodworking shows, business to business and home shows. Again this brought in a small amount of work but didn't set the world on fire.
About 2 years ago we saw 5 new shops open within 5 miles of us. Today, the remaining few send carving work to us.
In the mean time we got interested in screen printing and it now fills in the slow periods. At one time things were very slow during the winter. Now we are busy all the time, late nights and weekends. Our only vacations are to go to letterhead meets, and sign shows.
Anyone going to the screen printing show in Atlantic City next weekend?
ernie
------------------ Balch Signs 1045 Raymond Rd Ballston Spa, NY 12020 Wholesale Routing
posted
We were home based for many years. Dad's shop was just outside the kitchen door, much the same as Rick's. Some of you may recall the phot of me out back working at age 8 in SBus. some time ago. Other than the temptation to check on a job after dinner and staying 3 hours or that 6:30AM Sunday call from Nona who forgot to pick up her open house isng for taht day, it was great. About 25 years ago, we had to move into a commercial location, mainly because of complaints from neighbors. The issues were traffic, signs leaning against the shop, big trucks, paint smell, and we simply ran out of room to grow. Now the shop is across town and we leave work there mostly. We have plenty of room to have multiple projects going at once: 5600 sq. ft. under one roof; 3 16 ft. doors; 1 8 ft. door; 18x40 paint room; 10,000 sq.ft. fenced yd.; offices; and an image that commands a fair price for our work. I would not go back but some of the nostalgia for the days when I was growing up grab me once in a while and I yearn for simpler times.
------------------ Kent Smith Smith Sign Studio Greeley, Colorado, USA oldgilt@aol.com
Posts: 1025 | From: Estes Park, CO | Registered: Nov 1998
| IP: Logged |
Printer-friendly view of this topic