Most people think of a sign as little more than a painted board marking a business location. For business centers who think the same, the do so at their own detriment. In 98% of all USA retailing, the business sign is the basic link to the public; attracting new customers, branding the business and creating impulse sales.
By example, McDonald’s has 26,000 locations and spends about $40,000 on signage per store. That’s $1.40 billion worth of signs. Why would fast food restaurants spend so much on signage? Because a one-year survey revealed that that $40,000 worth of signage was responsible for over $600,000 in sales.
There is incredible value inherent in signage, especially when it is viewed as a way to market a business. When used as part of an over-all strategy, its full potential can be realized, increasing sales, cutting costs, helping businesses grow. This in turn can create jobs, improve communities and promote tax revenue for cities.
Signtronix says, “The more you Tell, The more you SELL!”
We’ll start by looking at why signage is so important to the retailers and the value it brings to a business. For almost all businesses, the most efficient form of advertising is the on-premise sign. To confirm this, one only has to look at the results of what is to our knowledge the largest, most extensive and ongoing survey every conducted in the sign industry. Over 10 years, nearly 800 business and some 12,000 customers have been surveyed. These businesses had just installed a new sign and the customer surveyed where there for the first time. These first-time customers were asked, “How did you learn about us?” Almost half, 45%, said the reason they came through the door was because of the sign. Not newspapers, not radio, not TV, the sign.
The significance of this cannot go unnoticed. This is why signage is so important to a retailer. As for its value, consider this, businesses stand a much greater chance of thriving in a competitive market if they can increase their customer base while cutting costs. Here’s how signage can decrease advertising expenses. The most basic way to evaluate any marketing method is the cost per 1,000 exposures.
Signtronix Signs are one of the least expensive, most effective forms of advertising for the a small business retail location.
The price and life expectancy of signage varies wildly but let’s assume this business is one of those fast food franchises that invested in a sign costing $33,000 that should last seven years. If the business were located on a street with 60,000 people passing each day, the cost per 1,000 exposures would be only $0.22. The same $33,000 spent on outdoor advertising for 1,000 exposures would be $1.65. A similar expenditure in newspaper advertising would cost $3.13, while television advertising for 1,000 exposures would cost $13.20.
Only 1% of first-time customers come in because of a television ad. But if you remember, 45% come in because of the sign. If a business is only spending $0.22 per 1,000 exposures to get that 45%, that’s a good use of their money. On-premise signage is both effective and economical. It is a powerful marketing tool for making the most of advertising dollars to reach potential customers.
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