Economics of Buying a New Sign

Pictures are worth a thousand words – you know that.
The same holds true for an outdoor sign. Not only is your outdoor sign effective in bringing you additional foot traffic, it is one of the most cost-effective methods of advertising a business.
Let us take an example to illustrate how effective and inexpensive an outdoor sign can be:
Cost of outdoor sign: $25,000
Life of outdoor sign: 8 years
Floating population walking and automobiles driving past your shop: 20,000/day     Read More

 

Maintenance: $100/month (maximum, including electricity)

Dissecting the information above, we can figure out that the capital cost of the sign per month will be $260.40 ($25,000 divided by 96 months). Add to this the monthly maintenance cost of $100, so that makes the cost $360.40 per month.

Now look at what a measly expense of $360.40/month is actually giving you:

You are reaching 600,000 (20,000 per day) people monthly – remember this figure excludes the passengers sitting in a car. Your cost of reaching 600,000 people monthly is just a super-economical HALF-A-CENT PER PERSON ($360.40 divided by 600,000).

1. Ask yourself this question: Can you use any other media to such advantage? Can you ever imagine that you can reach 600,000 people using any other media by spending $360.40? You know the answers. The lower the cost of getting a customer, the higher will be the profit margins: This is an age-old economic adage.
2. Your outdoor sign will stay put for years, developing goodwill for your business. And you don’t have to spend a dollar more than the cost you have already incurred and budgeted!
3. For $360.40 a month, your outdoor sign will interact with passers-by, inform them that your business exists, shake hands with them and request them to come inside and have a look at your merchandise. This can result in impulsive sales.

Well, the cost–benefit ratio of an outdoor sign will always work in your favor if you plan right and take care to see that your outdoor sign is appealing, visible and strikes the right chord with the passers-by.

Of course, it goes without saying that a poorly designed outdoor sign with badly written copy on it will, in fact, put off customers. Also a great outdoor sign that is not visible will work to your disadvantage. Therefore, it makes sense to talk to a professional and seek his advice before you plan your outdoor sign.

Comments are closed.