Small business owners, particularly in business to consumer markets, have a crucial decision to make when they are starting a business: “How and where do I spend my money most effectively to promote my business?”
This study from the US Chamber of commerce indicates the the most practical strategy for small businesses to avoid failure is, invest in the best sign you can afford to build awareness for your business, and do a good job for your customers so they will keep coming back and tell others about your company.
Not only is signage is the most effective way to build awareness of your business, it is also the most cost effective. Let’s look at this example:
This signage project is for an upscale high quality portrait photography business. Let’s compare the value of a sign vs the most common way for a business to promote a local business, a newspaper ad. The cost of a full page newspaper ad in the area of this business is roughly $5000, with a circulation of 125,000 readers. If you divide the cost of the ad by the number of readers you get a cost per impression of $.04.
This signage features sophisticated design that identifies the entire location with elements of the company’s existing brand identity. Did you ever notice that there are arches all over the place at every McDonald’s location. This photography business is selling a quality, professionally crafted product, and wanted their signage to reflect that. Let’s see if they made a good investment in promoting the brand awareness of their company.
Starting with a ballpark investment of $30,000 for this project, you might think it is very expensive, until you do the math. Comparing this brand promotion to a newspaper ad, we’ll take the cost of $30,000 and divide it by $.04, the impression cost of the ad, and get a figure of 750,000 impressions. This business wisely relocated to this location in a high traffic area, with an average vehicle volume of 23,000 every day. If we divide 750,000 by the daily impressions of 23,000, we find that the sign has delivered the same amount of impression value as the newspaper ad in 32 days. During and after that time, the signage delivers multiple impressions on the local prospective customer base, something a one time ad does not do. It’s clear that a high quality, well designed sign is one of the best investments for small businesses. Let’s look at another example of a project costing much more:
This sign is for an entertainment complax containing several restaurants, a children’s game room, and an indoor go-cart track. It’s 30 feet high and contains an electronic message boards promoting each business and special events. Even at a cost of well into six figures, with a traffic volume of 16,00 vehicles per day, this sign delivers a cost per impression of newspaper advertising in less than six months and after that, the costs keep declining as people continue to drive by it. When you consider a sign like this can last for 10-15 years, that’s a great value.
Remember the old saying, “You never get a second chance to make a good first impression.” Would you take your car to this place to get fixed?>Click Here to Find Out How to Find a Sign Company that Fits Your Needs