Here is an open face channel letter sign, located in the Westminster Promenade, near Denver. Photo courtesy of Direct Sign Wholesale.

Who couldn’t use a little more revenue these days? A smart gambling man would bet on just about everyone out there, and channel letters certainly can be a start for any type of sign shop. As a major application in the sign industry, many sign shops are missing out on the profit potential of channel letters because they do not own fabrication equipment. However, with the help of today’s channel letter wholesalers, you can make a profit simply from playing the role of the middleman with no extra labor needed.

WHY A WHOLESALER?

In these economic times, sign shops can’t afford to turn away business, and that requires flexibility in product offerings, says Gary Knoblock, owner of Gulf Signs. Whether you potentially can sell two sets or 50 sets of channel letters per week, Knoblock believes this is business that can’t be turned away and will positively influence your bottom line. According to Brian J. Leibovitz, Western regional sales manager of World Wide Sign Systems, channel letters particularly are lucrative because they are one of the most prominent applications in the sign industry.

“If you drive by any mini mall, any fast food establishment, everybody has channel letters,” explains Leibovitz.

While manufacturing your own channel letters is an option, partnering with a channel letter wholesaler allows sign shops to maintain a steady workflow at a cost-effective rate, says Trea Sciortino, general and owner of LetterFAB.

“We feel that we can provide the channel letters at a price point and turnaround rate so effectively and efficiently that a sign shop’s installation capital investments can be maximized. Retail sign shops must focus on sales and installations to create a market share. Wholesalers, like us, focus on sales and fabrication,” says Sciortino.

Channel letter wholesalers are able to offer lower fees because they are buying the materials, such as acrylic, at bulk price, notes John Lewis, president of Direct Sign Wholesale. By doing so, he approximates channel letter wholesalers accumulate savings up to 40 to 50 percent, which they then pass on to their customers. Fabricating your own channel letters also requires a large capital investment, and given today’s economic climate, most businesses are searching for ways to diminish their expenses, says Lewis.

By enlisting the help of a wholesaler, you also have more time to increase your business and concentrate on your sales effort instead of sweating away hours in your shop.

“If you’re in the sign business, you’re in the business to sell signs. Period,” says Michael Florio, president of Superior Wholesale Signage. “If you don’t manufacture channel letters, you can devote most of your time selling and not worrying about what’s going on in the shop, as far as manufacturing, as long as you can find a good wholesaler that can keep a commitment.”

Channel letter wholesalers can produce large amounts of channel letters with a quick turnaround. Photo courtesy of LetterFAB.	Remember to look for a vendor that provides UL-compliant channel letters, which especially is important when working with high-voltage neon. Photo courtesy of Superior Wholesale Signage.
This is an example of an open face channel letter sign that was installed near Coors Field in Denver. John Baylis, marketing manager of Direct Sign Wholesale, describes this as a prominent sign that easily can be seen from a distance.

WHOLESALERS GETTING INVOLVED

Clearly, those new to the channel letter market will need guidance when issuing quotes, but Leibovitz says, as a channel letter wholesaler, he can provide a detailed quote that highlights the voltage strength, size and color of each letter, power source, stroke level and mounting options. These quotes are client specific and typically delivered in a timely manner.

“Normally, we return quotes the same day. I would say that’s usually the standard process, and that’s basically across the board,” says Leibovitz.

If you’re not familiar with electrical signage, a channel letter wholesaler can complete the layout for you. Photo courtesy of Superior Wholesale Signage.

A channel letter wholesaler can provide you with a list of qualified installers in your area. Photo courtesy of Superior Wholesale Signage.

Even if your channel letter orders are small, it still can be a profitable service to offer. Photo courtesy of LetterFAB.

By using a channel letter wholesaler, you can take advantage of their bulk-price savings. Photo courtesy of World Wide Sign Systems.

Of course, channel letter wholesalers encourage sign shops to learn the quoting process as well. Knoblock says that most wholesalers will send sign makers a channel letter sample, which helps them understand the various components involved in this application. When a customer inquires about the channel letter process, not only will you be more familiar with the quoting system, but you also can discuss each aspect that goes into the project.

Channel letters are a form of electrical signage, and this may be a type of application with which many sign shops are not yet familiar. But, if you’re new to this sector, don’t let that intimidate you. Channel letter wholesalers understand the required electrical layout. While you initially may determine layout recommendations, the wholesaler will adjust the specifications as needed.

“It’s pretty much a mathematic formula. By physically looking at the customer’s specification, we basically advise the customer as to what they need for the channel letter—single or double stroke, neon or LED,” says Leibovitz.

SELECTING A VENDOR

When searching for a vendor, Lewis warns sign shops to avoid browsing strictly for the cheapest price.

“Price is important, but price is not the end all. Their reputation as a company is on the line every time they purchase something from a wholesaler, so it needs to be about quality, reliability and delivery time more than price,” advises Lewis.

If you plan on illuminating your channel letters with LEDs, Lewis recommends that you find a wholesaler using top LED manufacturers. Lewis says he uses GE, SloanLED and US LED. LEDs are not created equal, but by using some of the top brands, you can be sure you are providing a reliable sign that will not burn out six months down the road.

Now, this does not mean your bottom line is helpless. Sciortino recommends sign shops look for a vendor that can provide quotes already including shipping and other ancillary costs. Often sign shops assume these charges are built into the quote and are surprised to find the true cost. But a comprehensive quote will keep those extra charges from derailing your budget.

Installation can be a complicated process, especially to those new to channel letters; however, most wholesalers can provide you with a list of local installers.

While technical know-how is needed with electrical installation, this does not mean that it’s impossible to become involved without an electrician’s license—state and city certifications permitting, of course. 

“There are lots of avenues to research, but you need to find out which ones are best for you,” says Knoblock. 

Keep in mind, there is a risk involved when dealing with electrical signage installation because of the voltage levels used, which can present a dangerous fire hazard. Thus, selecting a UL-compliant wholesaler that follows Article 600 of the National Electrical Code is an absolute must.

Besides the safety issue, if the channel letters do not bear the UL label, the sign’s permit application may be denied, says Florio, and your client may not be able to open his or her store until the issue is fixed. But with the right channel letter wholesaler partner, you will be ready to avoid any problems and grow your business.