In our area, a licensed electrical sign shop has to have a Business License with the State, a business license in each incorporated city, a construction contractors license, an electrical contractors license (both with the associated bond fees), licensed electricians to do the electrical work - you cannot even put vinyl on an (illuminated) face in the field unless you are a licensed electrician. A permit is required everywhere you work, and you have to pay someone to create/submit the permits, which take 2-10 hours depending on where the job is. So when Joe Blow comes along and tells some startup business he can do their signs cheaper, is it any wonder some of them succumb to the cost factor?
Our job is educating the customer on what they get when they buy a sign from us versus a sign from JoeBlow. We have some great customers who recognize the quality product we produce.
Recently our state Labor & Industries (Washington State electrical police) has been trying to crack down on illegal signs, and it's nice to see that - perhaps - someone in authority is beginning to care! We'll see....