Custom neon signs cost: the ultimate guide for shopify store owners
How you price a custom neon sign, can ultimately determine the success of your online store. In fact, according to Shopify’s Future of Commerce Report 2022, price is a crucial factor influencing 74% of consumers’ purchasing behaviour. Its important to get your custom neon sign cost right.
️️📌 This is chapter 1 in the custom neon signs hub
How much do custom neon signs cost on average?
Some of the most common questions neon sign stores receive from customers are related to pricing.
The cost of a neon sign varies based on the size, colour, design complexity and the type of material used to create the lighting elements.
The primary factors that make up the cost are the materials used to build the sign and the size of the sign. Regarding materials, there is a significant difference in prices between modern technologies like FLEX LED compared to a traditional hand-blown glass sign filled with neon gas.
Learn more: Why are neon signs so expensive? Shopify store owners guide
Factors that impact custom neon signs cost
The final cost of a neon sign will depend on several variables. Let’s take a bit of a deep dive.
Neon sign materials
Since the early 1900s, neon gas has been the primary gas to produce the light of the sign. In the last 10 years, newer technologies such as LED Flex have improved and taken over the market.
Glass neon signs require a professional artist (bender) to create the sign, the gases used to create the unique lighting are costly and the nature of the materials also requires careful consideration and handling.
Newer technologies such as FLEX LEDs are much cheaper and easy to make, assembly is also much easier and certain stages of the manufacturing process can be automated using CNC machines.
An attractive reason to use traditional neon signs as opposed to the modern alternatives includes creating genuine and authentic 1940s or 1950s nostalgia. This could be for architectural restorations of old landmarks or for related marketing campaigns.
Sizing custom neon signs
Size is a critical factor when determining the price of a neon sign. The larger the neon sign, the higher the price, as more material is required to create the sign. In addition, shipping and labour costs are also relative to the size of the neon sign.
The following are some standard pricing ranges that individuals might anticipate:
- Small Size Neon Sign: 18 x 24 inch - $270 USD to $535 USD
- Big Size Neon Sign: 3 to 5 feet - up to $1,300 USD or more
When creating a neon sign for a customer, clearly communicating how specific designs affect the overall size of the sign is an essential exercise. In addition, there are physical property limitations in the material used that must be considered before approving a design.
Pricing Strategies
A common approach for store owners selling custom neon signs online is to charge per letter; the overall size of the sign dictates the price per letter.
Another way store owners charge is by the sign’s final width and height dimensions; this can provide a quick and easy way to assign a price for the sign greater than the shipping/building and materials costs. For some online stores that create their signs in-house, shipping can be a majority of the overall cost for the product.
A newer approach is to charge based on the amount of material necessary to build the overall letters of the sign. This approach can create a fairer pricing outcome which is great for customer satisfaction.
Not every pricing strategy is suitable for all online stores selling custom neon signs; the correct pricing strategy is discovered through experimentation. Sometimes the winning strategy is a combination of what has been mentioned.
Variety of colours
For traditional glass neon signs, the neon gas can only emit a reddish-orange light when charged with an electrical current. However, with the combination of additional gases such as Helium, Argon, Xenon, and Krypton, the light colour can vary into certain hues. Inside the neon glass tube, the artists may mix neon with these gases or a little bit of mercury to improve the intensity of the light and create different light effects.
A bender, as some neon sign artists like to call themselves, will require more time and effort to add additional colours and will be priced accordingly.
Design complexity and cost impact for neon signs
The cost of custom neon signs increases with more detail/complexity of the design. Just like size, the more complex a neon sign design results in an increase in materials used and labour costs. A simple design of a single word with a sans-serif font will be cheaper than a detailed and complex image even if they both end up being the same size.
Custom neon sign backboards
Backboards are not just used to support the light-emitting elements. They can also be a significant part of the aesthetic that ties the whole sign together. Some common types of backboard options are acrylic or mirror backboards. Popular choices for backboard options are the following: cut-to-letter, square, box and stand backboards.
Cut-to-letter offers an almost hidden look with just a tiny fraction of the backboard material visible. Cut to shape requires cutting around the design of the neon sign to match the overall shape. Box backboards are two rectangular pieces of material with four pegs between each piece to create additional depth. Some stores will charge an additional cost for a box backboard or for a mirror backboard.
Coloured jackets
When not illuminated, the tubing for both traditional glass and LED neon signs is usually white. The solution is to apply a coloured jacket over the tubing. This jacket keeps the neon signs coloured when turned off. Neon sign store owners may include an additional charge for this option.
Dimmers and other controllers
A popular choice for stores is to offer a dimmer for the LED signs via a. Having a dimmer can make the light emitted from the sign milder and easier for picture-taking. This option may come with additional charges.
Production timelines and shipping
Since every neon sign is handmade, production timelines will change depending on the material, size, and complexity of the design. A common offer that e-commerce businesses provide is free shipping for all custom neon signs with a 2 - 4 week shipping time frame. Some stores provide a fast-track option for delivery, this option usually comes with an additional charge.
Indoor and outdoor neon sign
Glass and LED Neons signs are by default built for indoor use. However, they can be shielded from rain, dew, snow, and ice using a protective layer that is rated up to ip67 standard. Having an additional option to select either inside or outside usage is a great way for business and individual customers.
Online store costs
Having an online store allows store owners to sell their products globally. Shopify is the top choice to start an online store for both startup and enterprise sign businesses. Shopify provides online sign store owners with the simplicity of use, and an extensive feature set, at a very reasonable price.
Online sign store owners may pay between $200 USD and $1000 USD in initial startup costs when starting an online store with Shopify. If store owners also need to sell in-store, the hardware cost will increase from $30 to $300 in addition to the $89 monthly subscription for a Shopify POS Pro per location.
So this business fee can impact the cost of a neon sign. Online sign store owners must consider this operation fee in the neon sign price.
Top pricing strategies for custom neon signs
Competitive pricing
Competitive pricing is an effective tactic that considers customer behaviour. This tactic allows an online sign store owner to edit the price based on the competitor’s charges. Although it is straightforward and low-risk, it ignores how buyers evaluate the worth of the items.
Value-based pricing
Value-based pricing, the favoured technique employed by many eCommerce pricing experts, enables individuals to determine a price based on how much buyers think things are worth.
It often yields more significant markups and is more lucrative than competitive and cost-plus pricing, making it the best choice for expanding organisations considering long-term strategy.
Price skimming
Price skimming could be the best tactic for marketing a genuinely unique or revolutionary product. It entails setting a high price and then decreasing it when other rivals show up and provide a comparable result. By using this strategy, businesses may increase sales while there is less competition and reduce prices to remain competitive.
Penetration pricing
Penetration pricing, the reverse of price skimming, performs best when a brand enters a market that is already highly competitive. Additionally, this technique, marketing tactics, and discount coupons effectively bring in new clients and raise brand exposure. Store owners should initially set their pricing modest and then increase them.
Psychological pricing strategies
Psychological pricing techniques, also known as appeal pricing, explain why retailers are more inclined to sell an item at $19.99 than $20.
How to calculate the custom neon signs cost precisely, faster, and more profitably?
To price a custom neon sign effectively requires a team of industry professionals to trace and measure the design submitted by the customer, this process involves a lot of time and effort and can be quite an expensive process, especially when a majority of the quotes are lost.
The solution to increasing sales for custom neon signs is the “Neon Sign Product Customizer” app. Our app lets the customer design and purchase their very own custom neon sign on your store.
Check Demo Now
With the help of our software, online neon sign owners may enable consumers to design, instantly review, and purchase their neon signs in less than a minute. This app incorporates a user-friendly dashboard that allows Shopify stores to easily edit the fonts, sizing, pricing, and other options.
The entire customer experience is optimised to increase sales for custom neon signs, and works great on both desktop and mobile devices. There’s no more exchanging emails with potential clients sending design modifications back and forth.
No matter what the customer’s design decides to create, our sign software offers a flexible pricing model to ensure online sign store owners are always making a profit for each custom sign.
See on the Shopify app store
Final thoughts
If you own an online sign store, having a solid pricing strategy is crucial to staying competitive in the neon sign market.
As more and more businesses, from restaurants to wedding studios and even food trucks, are incorporating neon signs into their storefronts, it’s important to have a strategy in place for pricing your custom neon signs.
What will your pricing strategy be for your store?
