Sign Pricing Software: 4 Models That Protect Your Margins

Wrong pricing kills sign businesses faster than bad marketing. A customer orders “HAPPY BIRTHDAY JENNIFER” in a cursive font, you charge the same as “LOVE” in block letters, and suddenly you’re losing $40 per order. Multiply that by fifty orders a month and you’ve got a serious problem.

Sign pricing software solves this by calculating prices automatically based on what customers actually design. But here’s what most guides won’t tell you: there’s no single “best” pricing model. The right choice depends on what you sell, how you manufacture, and what margins you need.

This guide breaks down the four main sign pricing models with real numbers so you can pick the right one for your business.

Why Generic Pricing Doesn’t Work for Signs

When a customer types “Hi” versus “Congratulations on Your New Home”, they’re ordering fundamentally different products:

Material costs vary dramatically. “LOVE” in a simple font might use 0.8 metres of LED neon. “HAPPY BIRTHDAY SARAH” in cursive could use 4.2 metres. At $35 per metre manufacturing cost, that’s a difference of $119 in materials alone.

Production time scales with complexity. A four-letter sign takes 20 minutes to bend and mount. A complex 25-letter sign takes 90 minutes. Labour costs matter.

Shipping dimensions change. A 40cm sign fits in a standard box. A 120cm sign needs custom packaging and costs three times more to ship.

Sign pricing software tracks these variables automatically. Your job is configuring the right model for your product type.

The Four Sign Pricing Models

1. Fixed Width Pricing (Simple Letter Model)

Fixed width pricing assigns prices based on predefined size tiers. Customers pick from options like “Small”, “Medium”, or “Large”, and the price is set regardless of what text they type.

How it works in practice:

Real example: Customer A orders “LOVE” at 50cm width. Customer B orders “WELCOME HOME” at 50cm width. Both pay $199. Customer A’s sign costs you $55 to manufacture (simple text, less material). Customer B’s costs $85 (more letters, more material). You make $144 on Customer A and $114 on Customer B.

The trade-off is predictability versus precision. You’ll overearn on simple orders and underearn on complex ones. It averages out, but if your customer base trends toward longer text, your margins erode.

Use fixed width when:

• You’re just starting and want simple setup
• Your signs have standardised size offerings
• Speed of launch matters more than margin optimisation
• You sell mostly pre-designed templates rather than fully custom text

Avoid fixed width when:

• You sell primarily neon signs with variable material usage
• Your average order has 10+ characters
• You need precise margin control

2. Material Length Pricing (Advanced Letter Model)

Material length pricing calculates the exact length of neon tubing, LED flex, or other material required based on the specific text and font. The system traces the font path mathematically and multiplies by your per-metre rate.

How the calculation works:

Total Price = Base Fee + (Material Length × Per-Metre Rate) + Options

Real example with numbers:

Customer orders “HELLO” in a script font at 60cm width:

• System traces font paths and calculates: 2.4 metres of LED needed
• Base fee: $50 (covers fixed costs)
• Per-metre rate: $40 (covers material + labour)
• Material cost: 2.4 × $40 = $96
• Customer pays: $146

Same customer orders “Hi” in the same font at 30cm width:

• Material calculation: 0.6 metres
• Material cost: 0.6 × $40 = $24
• Customer pays: $74

The maths behind the rates:

Why this matters for neon sign pricing: A cursive font like “Great Vibes” uses 40% more material than a block font like “Bebas Neue” for the same text at the same width. Material length pricing captures this automatically. Fixed width pricing doesn’t.

Use material length when:

• You sell LED neon or flex neon signs
• Font variety is a selling point
• You want maximum margin accuracy
• You’ve validated your costs and are ready to optimise

Avoid material length when:

• You’re brand new and haven’t validated manufacturing costs
• Price changes during customisation confuse your customers
• You sell primarily pre-designed signs with known costs

3. Frame Fit Pricing

Frame fit pricing bases the price entirely on the outer frame or backboard dimensions. What the customer puts inside that frame doesn’t change the price.

How it works:

Real example: Customer orders a lightbox sign, 50 × 40cm. They type “OPEN” — price is $249. They type “COFFEE & COCKTAILS” — price is still $249. The backboard, frame, and LED strips cost the same regardless of text content.

This works because: For lightbox signs, frame-based signs, and backboard-mounted displays, the primary cost driver is the outer structure, not the text inside it. The LED illumination and vinyl lettering are relatively minor cost variables.

Use frame fit when:

• You sell lightbox or backlit signs
• Your products have fixed frame/backboard sizes
• Material inside the frame doesn’t significantly change costs
• You want customers to know the exact price before they start designing

Avoid frame fit when:

• Text complexity significantly affects your costs
• You sell primarily text-only neon without backboards
• Customers frequently want custom sizes outside your tiers

4. Per-Letter Pricing

Per-letter pricing charges for each character individually, plus a base fee. It’s the most straightforward model for products where each letter is literally a separate physical item.

How it works:

Total Price = Base Fee + (Number of Letters × Price Per Letter)

Real example:

The limitation: “W” and “I” cost the same, but “W” uses 3-4 times more material. If most of your customers order text heavy on wide letters, you’ll underprice consistently.

Use per-letter when:

• You sell channel letters where each letter is a discrete unit
• Letters are individually mounted (not connected neon)
• Your manufacturing is priced per character
• Simplicity matters more than precision

Avoid per-letter when:

• You sell connected neon where letter complexity varies
• Your fonts have dramatically different character widths
• Margin precision is critical

Comparison: Which Model Fits Your Business?

Quick decision guide:

• Starting out? Use Fixed Width. Launch fast, learn your costs, upgrade later.
• Selling LED neon? Use Material Length. It’s the only model that handles font complexity properly.
• Selling lightboxes? Use Frame Fit. Your costs are frame-driven, not text-driven.
• Selling individual channel letters? Use Per-Letter. It matches your manufacturing model.

Setting Up Your Pricing: Step by Step

Step 1: Calculate Your True Costs

Before configuring anything, know your numbers. Here’s a worksheet:

Per-sign fixed costs:

• Payment processing: 2.9% + $0.30
• Shopify transaction fee: 0.5-2%
• App subscriptions (amortised): ~$2-5/order
• Packaging materials: $5-15
• Customer support time: ~$3-5/order

Per-sign variable costs:

• Manufacturing (from your supplier)
• Shipping to customer
• Remake allowance (5% of orders need remakes)

Example cost breakdown for a 60cm neon sign:

To hit 60% gross margin, you need to sell this sign for at least $258. Most sellers price at $279 for the margin cushion.

Step 2: Set Your Target Margins

Industry benchmarks for sign businesses:

Working backwards from margin targets:

If you want 60% margin and your total cost is $80:

• Cost is 40% of selling price
• $80 ÷ 0.40 = $200 selling price

Step 3: Configure Your Model

For Fixed Width:

1. Define 4-6 size tiers with clear boundaries
2. Calculate your cost at the maximum width of each tier
3. Set prices to hit your margin at maximum width (not minimum)
4. Test with sample orders at both extremes

For Material Length:

1. Get accurate font files from your manufacturer
2. Set your base fee to cover fixed costs ($40-60 typical)
3. Set per-metre rate to cover variable costs plus margin ($35-50 typical)
4. Test with short text, long text, simple fonts, complex fonts
5. Verify margins across all scenarios before launching

For Frame Fit:

1. Define your standard frame sizes
2. Get manufacturing quotes for each size
3. Apply your margin target
4. Consider “popular size” discounts for volume sizes

Adding Options and Upcharges

Your base pricing model handles the sign itself. Options add profit:

Options are high-margin additions that increase average order value without adding complexity to your base pricing.

Common Pricing Mistakes

Mistake 1: Racing to the Bottom

Competing on price attracts price-sensitive customers who leave one-star reviews over $5 shipping. Compete on quality, service, and experience. A $279 sign with great photos and fast shipping outsells a $199 sign with stock images and 4-week delivery.

Mistake 2: Ignoring Remake Costs

Budget 5% of revenue for remakes. That’s not pessimism — it’s reality. A single spelling error remake on a $300 sign wipes out the profit from three normal orders.

Mistake 3: Static Pricing

Review pricing quarterly. Material costs shift 5-10% annually. Shipping rates increase every January. Your experience grows and you can charge more. Adjust accordingly.

Mistake 4: Overcomplicating the Customiser

Every additional option adds decision fatigue. Start with 8-10 fonts and 10-12 colours. You can always add more. Stores with 50 fonts and 30 colours have lower conversion rates than focused stores with curated selections.

Mistake 5: Forgetting Psychology

$197 converts better than $200. $149 converts dramatically better than $150. Price just below round numbers. It’s not manipulation — it’s meeting customer expectations.

Testing Before Launch

Run these four scenarios through your pricing calculator before going live:

Scenario 1: Simple order “LOVE” in a block font, 40cm width

• Expected margin: Should be your highest
• If margin is below 60%, raise your minimum price

Scenario 2: Complex order “Happy Birthday Jennifer” in cursive, 80cm width

• Expected margin: Should still be above 50%
• If margin drops below 45%, your model isn’t capturing complexity

Scenario 3: Maximum size Longest text and width you’ll accept

• Expected margin: Should be above 40%
• If it drops lower, you’re underpricing large orders

Scenario 4: Minimum viable Shortest sensible order (“Hi”, “A+”, etc.)

• Expected price: Should feel reasonable to customers
• If it’s under $70, your base fee is too low

Frequently Asked Questions

Implement Your Pricing Model

Sign pricing software removes the guesswork from custom sign sales. Pick the model that matches your product type, configure it with real cost data, and test thoroughly before launch.

For most LED neon sellers, Material Length pricing protects margins best. For beginners or lightbox sellers, Fixed Width or Frame Fit get you running faster with acceptable accuracy.

Ready to configure your pricing? Install Sign Customiser and set up your pricing model in under an hour. For more on how much neon signs cost from a customer perspective, see our pricing breakdown guide. And if you’re just starting out, our guide on how to start a neon sign business on Shopify covers the full journey from idea to first sale.