You're about to put up a sign on your building. You've seen those big illuminated letters on storefronts everywhere. But when you start looking into options, you realize there's more than one way to light up your business name.

The two main choices? Channel letters and cabinet signs (also called lightbox signs or box signs). Both use LED lighting. Both look professional. Both get your name seen at night.

So what's the difference? And which one is right for you?

Let me break it down so you can make the right call for your budget and your brand.

What Are Channel Letters?

Channel letters are three dimensional signs where each letter is made and mounted individually. The body is aluminum, the face is acrylic, and LEDs inside make them glow.

Think of any Starbucks, Chipotle, or strip mall storefront. Those individual glowing letters? Channel letters.

Each letter casts its own shadow during the day and lights up independently at night. They look modern, professional, and substantial. Most shopping centers and landlords in Houston require channel letters for their tenants.

You can get them in different styles:

• Front lit: Light shines through the face (most common)

• Back lit (halo): Light shines behind the letter onto the wall

• Dual lit: Both front and back illumination

• Open face: No cover, exposed lighting for a retro look

What Are Cabinet Signs (Lightbox Signs)?

Cabinet signs are enclosed box structures with a translucent face. Your logo, graphics, and text are printed or applied to the face, and LEDs inside light up the entire panel.

Unlike channel letters where each letter is separate, a cabinet sign is one solid unit. The shape can be rectangular, square, oval, or custom cut to match your logo.

You'll see cabinet signs on gas stations, fast food restaurants, and businesses that need to display complex logos with lots of detail. They're also common on pylon signs and monument bases.

Cabinet signs can be single sided (mounted on a wall) or double sided (mounted on a pole so traffic sees it from both directions).

Channel Letters vs Cabinet Signs: Quick Comparison

Channel Letter Pros and Cons

Why Choose Channel Letters

• Professional appearance. They look upscale and established. Banks, law firms, medical offices, and retail stores all use them for a reason.

• Dimensional depth. Each letter casts shadows and stands out from the building. Flat signs can't compete.

• Landlord compliance. Most Houston shopping centers require channel letters. Check your lease before you decide.

• Longer lifespan. Aluminum doesn't rust. LEDs last 50,000+ hours. With basic maintenance, expect 10+ years.

• Targeted repairs. If one letter has a problem, you fix that letter. You don't replace the whole sign.

• Better energy efficiency. LEDs only light the letters, not empty space around them.

Channel Letter Drawbacks

• Higher upfront cost. Each letter is individually fabricated, wired, and installed. More labor means more money.

• Limited graphic options. You can do letters and simple logo shapes, but detailed images don't work well.

• More complex installation. Takes longer and requires more drilling into your building.

Cabinet Sign Pros and Cons

Why Choose Cabinet Signs

• Lower upfront cost. One box is cheaper to build than a dozen individual letters. If budget is tight, this matters.

• Full graphic capability. Complex logos, photos, gradients, fine text, all work great on a cabinet sign.

• Larger display area. Need to show more than just your name? Cabinet signs give you room for taglines and imagery.

• Easier installation. One unit mounts faster with fewer wall penetrations. Landlords sometimes prefer this.

• Double sided option. Pole mounted cabinet signs let traffic see your business from both directions.

Cabinet Sign Drawbacks

• Less premium look. Flat boxes don't have the same visual impact as dimensional letters.

• Shorter lifespan. Acrylic faces can yellow or crack over time, especially in Houston's sun and humidity.

• Full replacement issues. If the face cracks or fades, you often need to replace the entire panel.

• Higher energy use. LEDs light up the whole face, not just specific elements. More power consumption over time.

Which One Should You Pick?

Go With Channel Letters If:

• Your landlord or shopping center requires them

• You want a modern, professional appearance

• Your business name is relatively short and simple

• You're in retail, professional services, or hospitality

• You want the sign to last as long as possible

• Energy efficiency matters to you

Go With Cabinet Signs If:

• Budget is your main concern

• Your logo has complex graphics or fine details

• You need double sided visibility from a pole or pylon

• You want to display more than just your business name

• Your building can't handle many wall penetrations

• You're near a highway and need maximum visibility from a distance

Can You Use Both?

Absolutely. Many businesses combine channel letters with a cabinet logo box.

For example, you might have your business name in channel letters with a cabinet style logo shape next to it. This gives you the dimensional look of channel letters plus the graphic flexibility of a lightbox for your icon or emblem.

Fast food chains do this all the time. The name is in channel letters, the logo mascot or symbol is in a cabinet box. Best of both worlds.

What About Monument Signs?

Monument signs are ground level structures you see at office complexes, shopping centers, and apartment entrances. They're a separate category, but they often use either channel letters or cabinet panels mounted on top of a brick, stone, or concrete base.

If you need a monument sign for your Houston business, we can help you figure out whether channel letters or a cabinet panel makes more sense for your setup.

Realistic Cost Expectations in Houston

Let me give you real numbers so you can budget properly:

Channel Letters:

A typical storefront sign with 8 to 12 front lit letters runs $3,500 to $6,000 installed. Halo lit or dual lit versions add 20 to 40% more. Large signs with 24 inch+ letters can hit $10,000 to $15,000 or higher.

Cabinet Signs:

A standard single sided illuminated cabinet sign runs $1,500 to $4,000. Double sided pole mounted signs cost more, typically $3,000 to $7,000 depending on size and mounting requirements.

Both prices depend on size, complexity, mounting method, and permit requirements. Houston requires permits for most illuminated signs, and that adds to the cost. A good sign company handles permits as part of the project.

For detailed pricing on channel letters specifically, check out our guide on how much channel letters cost in Houston.

The Bottom Line

Here's the honest truth: neither sign type is universally better. It depends on your situation.

Channel letters win on appearance, longevity, and energy efficiency. They cost more upfront but pay off over time.

Cabinet signs win on cost, graphic flexibility, and simplicity. They're the smart choice when budget matters or when you need to display complex visuals.

Most Houston storefronts end up with channel letters because that's what landlords require and what customers expect to see. But if you have flexibility, consider what best represents your brand and fits your budget.

Need Help Deciding?

At Houston Sign Crafters, we build both channel letters and cabinet signs in house. We can look at your building, talk through your goals, and give you honest advice on which option makes more sense.

No hard sell. Just straight answers.

Call us at 832-974-2546 or fill out the form on our site. We'll get back to you within one business day.

See what else we can do for your Houston business:

• Channel Letters

• Monument Signs

• Vehicle Wraps

• Wall Graphics

• Interior Signs

• Custom Banners