The four pricing models every sign shop should know
Most signage estimates combine these building blocks. Get them into a repeatable formula and your whole team quotes the same way, every time.
Dimension-based (W × H × Rate)
Price = Width × Height × RateThe workhorse of sign shop estimating. Multiply the sign's width by its height to get square inches (or square feet), then apply a per-unit rate that reflects your material and labor cost. A retail rate of 0.7 per square inch and a wholesale rate of 0.3 lets you quote both direct customers and resellers from the same source of truth.
Margin-based / markup
Price = Cost ÷ (1 − Target Margin)Start from your true cost (materials + labor + overhead) and work up to a price that protects a target margin. Markup and margin are not the same: a 2× markup on a $100 cost is a 50% margin, not 100%. Codifying the formula stops reps from quoting at thin or negative margins under pressure.
Add-on multipliers
Price = Base × (1 + Σ Add-on %)Premium options stack on top of the base price as percentages: RGB lighting +15%, rainbow effect +20%, premium acrylic +30%, UV print +10%, while a USB power option can apply a −25% adjustment. Storing each add-on as a configurable percentage keeps quotes consistent across the whole team.
Commission on profit
Commission = (Deal − Wholesale) × RatePay reps on the profit they generate, not on top-line revenue. Subtract the wholesale cost from the final deal value and apply the rep's tier rate (for example 30% or 40%). Transparent, formula-driven commissions mean reps can see their earnings update in real time as a deal is built.
A worked example
Say a customer wants a 24" × 12" neon-style sign with RGB lighting on premium acrylic.
- Base (retail): 24 × 12 × 0.7 = $201.60
- Add-ons: RGB +15% and premium acrylic +30% → base × 1.45 = $292.32
- Wholesale cost: 24 × 12 × 0.3 = $86.40
- Rep commission (30%): ($292.32 − $86.40) × 0.30 = $61.78
Every number above flows from two inputs — dimensions and options — which is exactly what makes pricing a perfect candidate for automation.
Why automate your pricing formulas
Quote in seconds, not spreadsheets
Enter the dimensions and options once and the price, wholesale cost and commission calculate instantly — no copy-pasting between spreadsheet tabs or re-keying formulas.
One price list, everywhere
Rates, add-ons and commission tiers live in one place. Update a rate once and every new quote, proposal and invoice picks it up automatically.
Protect every margin
Because the formula enforces your cost and target margin, reps can't accidentally underprice a job — the math is the same on every estimate.
Frequently asked questions
How do you price a sign?
Most sign shops price using a dimension-based formula — width × height × a per-unit rate — and then layer on percentage-based add-ons for premium options like RGB lighting, premium acrylic or UV printing. The rate is set so that the price comfortably covers materials, labor and overhead while protecting a target margin.
What is a typical markup for a sign shop?
Many shops target a 2–3× markup over wholesale cost, which translates to roughly a 50–67% gross margin. The right number depends on your materials, labor and local market — the key is to encode it in a formula so every quote applies it consistently.
What's the difference between retail and wholesale pricing?
Retail pricing is what a direct customer pays; wholesale pricing is the lower rate offered to resellers or trade partners. A common approach is to drive both from the same dimensions with two different per-unit rates — for example a retail rate of 0.7 and a wholesale rate of 0.3 per square inch.
Can estimates software automate these pricing formulas?
Yes. Sign shop software like Atellier stores your pricing formulas, add-on multipliers and commission tiers in configurable settings, so a quote, proposal, invoice and rep commission are all calculated automatically from a single set of inputs — saving time and eliminating math errors.