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Outrageous Advertising

admin — Sat, 17 Jul 2010 19:38:35 +0000

Outrageous advertising for
outrageous results

By Harvey Mackay

“Outrageous” is rarely a way we’d like to be described. It implies that we are way over the top, attention-seeking, bold, wild, defying convention, and a few other descriptions that we might prefer not to be called.

Apply that term to your advertising, however, and what you have is an over-the-top, attention-grabbing, bold, wild, unconventional message that people notice — and that gets results!

Bill Glazer, one of the most sought-after marketing strategists in the world — clients routinely pay more than $25,000 — is offering his outrageously successful system in a new book, “Outrageous Advertising That’s Outrageously Successful” for a tiny fraction of his usual fee. It’s one of the best bargains of the year.

Bill wrote this book for the “99 percent of small business owners who are dissatisfied with the results they get from their current advertising.” He summarizes his system in six points:

Outrageous works. Why it does is irrelevant. It does.
Outrageous works in any media for any product.
People are bored and overwhelmed and want to be amused.
People love outrageous advertising.
Always be on the lookout for the next outrageous idea.
Discover that outrageous advertising is the number one most fun thing you’ll do in your career.

Building on these ideas, he has built a system that works on ads in a wide variety of media, including websites, email, newspapers and magazines, yellow pages, business cards, signs, voicemail, trade shop marketing, help wanted and direct mail. He offers hundreds of examples as well as resources for even more ideas.

Bill has a very distinctive business card that I’m guessing few people file away and never look at again. It looks like a folded hundred-dollar bill on one side. The card folds out to reveal six quick selling points about what he offers. Even if the recipient never uses Bill’s services, that card gets shown over and over again because it is so novel. Perhaps one of the people who see it will require Bill’s services. Sure, it’s outrageous, but it works!

Where do these outrageous ideas come from? It all starts with a headline, no matter what the medium, he says. Print ad headlines are obvious. In radio, the headline is the very first thing you hear. Bill warns not to jump at the first headline you think of: “When writing a marketing piece, I will never write less than ten headlines. I have written as many as 100 headlines before I have chosen one I wanted to use.”

Bill says whenever he is stumped on an idea or just to get his brain working, “I look at a list of 350 of the best headlines ever written. These are great to turn into templates and create your own ideas. They serve as an Outrageous shortcut.” So convinced of this inspiration, he includes 100 of his favorite headlines to get the reader started.

In addition to a killer headline, the ad also must contain an offer and a deadline. Bill’s examples are clear, easy to follow and plentiful. He covers the importance of photos and illustrations, graphics and testimonials, which he says are “at least ten times more believable than what you say about yourself.”

I was already pretty convinced that Bill knew what he was doing when I read his views on envelopes — and how outrageous mail advertising starts with the outside of the envelope. The man must have been reading my mind! Everyone gets mail, he reminds us, and unusual-looking mail gets noticed.

In addition to all the good advice and outside resources to study, there’s even a list of holidays (like National Hat Day) to connect your advertising to. National Hat Day? That is pretty outrageous. But if it helps you sell your product, would you still think it outrageous?

Bill describes his system this way:

More outrageous gets more attention.
Know your audience; don’t be offensive but never be boring.
You can advertise really outrageously in some really outrageous places.
You can be really outrageous without spending a lot of money by identifying opportunities you already have such as an on-hold message, vehicles, signs, etc.
You can be really outrageous by using the senses of hearing, seeing, feeling and even smelling.

Mackay’s Moral: If you want outrageous results, you need to try outrageous advertising.

History of the American Flag

admin — Thu, 25 Mar 2010 01:29:24 +0000

History of the American Flag

For more than 200 years, the American flag has been the symbol of our nation’s strength and unity. It’s been a source of pride and inspiration for millions of citizens. And it has been a prominent icon in our national history. Here are the highlights of its unique past.

On January 1, 1776, the Continental Army was reorganized in accordance with a Congressional resolution which placed American forces under George Washington’s control. On that New Year’s Day the Continental Army was laying siege to Boston which had been taken over by the British Army. Washington ordered the Grand Union flag hoisted above his base at Prospect Hill. It had 13 alternate red and white stripes and the British Union Jack in the upper left-hand corner (the canton).

In May of 1776, Betsy Ross reported that she sewed the first American flag.

On June 14, 1777, in order to establish an official flag for the new nation, the Continental Congress passed the first Flag Act: “Resolved, That the flag of the United States be made of thirteen stripes, alternate red and white; that the union be thirteen stars, white in a blue field, representing a new Constellation.”

Between 1777 and 1960, Congress passed several acts that changed the shape, design and arrangement of the flag and allowed for additional stars and stripes to be added to reflect the admission of each new state.

* Act of January 13, 1794 - provided for 15 stripes and 15 stars after May 1795.
* Act of April 4, 1818 - provided for 13 stripes and one star for each state, to be added to the flag on the 4th of July following the admission of each new state, signed by President Monroe.
* Executive Order of President Taft dated June 24, 1912 - established proportions of the flag and provided for arrangement of the stars in six horizontal rows of eight each, a single point of each star to be upward.
* Executive Order of President Eisenhower dated January 3, 1959 - provided for the arrangement of the stars in seven rows of seven stars each, staggered horizontally and vertically.
* Executive Order of President Eisenhower dated August 21, 1959 - provided for the arrangement of the stars in nine rows of stars staggered horizontally and eleven rows of stars staggered vertically.

Today the flag consists of thirteen horizontal stripes, seven red alternating with 6 white. The stripes represent the original 13 colonies, the stars represent the 50 states of the Union. The colors of the flag are symbolic as well: Red symbolizes Hardiness and Valor, White symbolizes Purity and Innocence and Blue represents Vigilance, Perseverance and Justice.

Targeting the Imaginary Customer

admin — Mon, 14 Dec 2009 12:21:35 +0000

Interesting MondayMorningMemo for the “Wizard of Ads”

MondayMorningMemo©
of Roy H. Williams, the Wizard of Ads®

Targeting the Imaginary Customer
Ask the wrong question and you will get the wrong answer
Most businesses target an imaginary customer because someone – probably an advertising salesman – once asked, “Who is your customer?”

Ask any businessperson, “Who is your customer?” and he or she will likely answer with a singular customer profile. Something like, “My customer is a career woman between 28 and 44 years old, college educated, making at least $45,000 per year. She has exceptional taste and style and wants to express her individuality through her purchases.”

And her favorite author is Danielle Steele and she likes to take long walks on the beach in the moonlight, right?

Ill-advised questions like, “Who is your customer?” must find their answers in that shadowland where memory meets imagination.

Although it may seem logical on the surface, “Who is your customer?” is a dangerously worded question.

Yes, I said “dangerously” worded.

Your whole life you’ve been told, “We remember more of what we see than what we hear.” But it isn’t true. In fact, clinical tests have proven quite the opposite: the precise wording of what enters our ears profoundly alters what we see in our mind.

The question, “Who is your customer?” conjures the mental image of an individual since “customer” isn’t plural. Ask that same business owner, “How many different types of people do you serve?” and you’ll get a radically different, far more valuable answer.

So now you’re going to tell me the 28 to 44 year-old female customer profile you gave me was the average customer, right?

Dr. Neil Postman, the celebrated Chair of the Department of Culture and Communications at New York University, has this to say about it:
“We must keep in mind the story of the statistician who drowned while trying to wade across a river with an average depth of four feet. That is to say, in a culture that reveres statistics, we can never be sure what sort of nonsense will lodge in people’s heads… A question, even of the simplest kind, is not, and never can be unbiased. The structure of any question is as devoid of neutrality as its content. The form of a question may ease our way or pose obstacles. Or, when even slightly altered, it may generate antithetical answers, as in the case of the two priests who, being unsure if it was permissible to smoke and pray at the same time, wrote to the Pope for a definitive answer. One priest phrased the question ‘Is it permissible to smoke while praying?’ and was told it is not, since prayer should be the focus of one’s whole attention; the other priest asked if it is permissible to pray while smoking and was told that it is, since it is always permissible to pray.”
In a Loftus & Palmer experiment reported by Dr. Alan Baddeley in his 1999 book, Essentials of Human Memory*, a group of people were asked to watch the video of a collision between two automobiles. Viewers who were asked, “How fast were the cars going when they smashed into each other?” gave answers averaging 40.8 MPH and reported having seen broken glass. But viewers reported speeds averaging only 31.8 MPH and remembered no broken glass when asked, “How fast were the cars going when they made contact?” Keep in mind that each group had seen the same video only a few moments before these questions were asked.
Control the question and you control the mental image it conjures.

Create your marketing plan around the question, “Who is my customer?” and you’ll soon bump your head against a very low ceiling. The true profiles of “your customer” are like the characters in a Fellini movie; an unimaginable circus of people with conflicted personalities and unconscious buying motives.

Proponents of hyper-targeting are quick to say, “You’re using the shotgun approach. I believe in putting the customer in the crosshairs of a rifle.”

But we’re not hunting just one customer, are we? Hyper-targeters believe in fishing with a hook. But for best results, I suggest you find a net.

If you want to grow your business, don’t target age, sex, income or education. Target according to buying motives. The question isn’t, “Who is my customer?” but rather, “Why does my customer buy my product? What does it do for him or her?” The answers to these questions will tell you exactly what to write in your ads.

Congratulations. You found your net.

Roy H. Williams

Make Sure Your Worries Make Sense

admin — Sun, 12 Apr 2009 10:15:17 +0000

Harvey Mackay’s Column This Week

Make sure your worry makes sense
There are plenty of things to worry about these days: your job, your 401(k), your kids’ education, your mortgage. Does worrying really help with any of them?

Worrying can be a productive way to stave off problems, but it also can make the original problem seem even worse. Here’s an exercise recommended by Robert L. Leahy, director of The American Institute for Cognitive Therapy, which can help you understand the difference between productive and unproductive worry:

Imagine that you are on trial and facing 20 years in prison. You’ve hired a lawyer, and you’re praying she’s going to be able to help you. She leans over and says, “Don’t worry. I never do. I never worry about a thing. Instead, I just try to think positively.”

Now ask yourself: “Is this the person I want representing me? Someone who doesn’t worry about anything—not even what’s going to happen to her client?”

The answer, of course, is a resounding no. You want a lawyer who’s going to worry over details—cover everything that needs to be covered, so you don’t end up in prison for 20 years. What you want is for your lawyer to worry, and then take appropriate action so that she is prepared, Leahy says.

Now imagine a lawyer who leans over and whispers to you, “Wanna know my secret? I never prepare for a case—I just worry. It’s why I’m known as such a great attorney. All I do is worry. As a matter of fact, a lot of times I actually worry myself sick and have to go into the restroom and throw up.”

Do you want this person representing you? Again, the answer is no. What you want is an attorney who can help you solve your problems. And that’s exactly what your worry should do for you, says Leahy: help you solve your problems. If it doesn’t, you’re probably participating in unproductive worry, which is unlikely to get you anywhere, except on your way to becoming overly anxious and possibly depressed.

Leahy recommends asking these two questions to keep worry in perspective:

Is the problem plausible or reasonable? If you’re getting ready to take a trip to a national park, for instance, it’s appropriate to worry about getting accurate directions and your car tuned up before you go. Worrying about being shot by a sniper along the way, which is unlikely, is probably a waste of time.
Can something be done about the problem immediately? If you answer yes to this question, then you can probably come up with an action plan to get something done that will alleviate your worry. To continue the previous example: Can you log on the Internet and get directions? Can you get an appointment with a mechanic? As for the sniper, unless you can afford a new bulletproof car and a wardrobe of armor, forget about it.
My good friend Lou Holtz has a sign in his office that reads: “The time to worry is before you place your bet, not after they spin the wheel.”

Lou, as you know, was one of the most successful college football coaches in the last few decades. Lou was known for his well-prepared teams and his demanding practices. He is not known for being a worry wart. He won, and lost, some very close games. Worrying didn’t help him put points on the board. Like every good coach, Lou knew that sometimes the ball just takes a bad bounce.

Let me share some very simple strategies for dealing with worries that are really beyond your control. Think positive! Take a walk. Turn off the news. Read a book with your kids. Volunteer your time for someone less fortunate. Eat a piece of chocolate. Pray. Visualize your dream vacation.

Then remember the story of the poor farmer who lost his crops to a drought, battled disease in his cattle, and watched his barn go up in flames after being hit by lightning. Somehow, he maintained his pleasant disposition and sense of humor. How did he stand it, his neighbors wondered.

“Well, it’s like this,” the farmer said. “In the Bible, it says, ‘It came to pass.’ But it never says ‘It came to stay.’”

Mackay’s Moral: Your biggest worry should be that you are worrying too much.

Putting the Passion Back in Your Work

admin — Mon, 23 Mar 2009 13:31:21 +0000

Putting the Passion Back in Your Work
If your job no longer seems unique and challenging, we have some suggestions on how you can renew your passion for your work. Here are some things you can do to reinvent your career and bring more value to your work:
· Start by taking a look at what you’re doing and then try to do it better. You could redesign what you’re doing–introduce a new element or re-engineer a process. You might even work toward improving a product, service or process.
· Choose how you use each day. Reorganize and get rid of what’s not working for you.
· Reframe what you think about work. Remember, work is what you make it.
· Reset your course by having a clear plan of where you want to go. Keep focused on your goals. You’ll find renewed energy and improved self-assurance as you reach each goal you’ve made for yourself.
· Each day, deliberately take action instead of just reacting to people and situations. Be proactive and make your work what you want it to be.
· Pay attention to your health by eating a balanced diet, exercising and getting enough sleep at night.
· Take some quiet time to think about what it is that you really want to do. Make a list of your interests and talents. Write another list of jobs you might be able to incorporate them into.
· Look for opportunities to change jobs within your organization–it may be time to do something completely different.
Although the source of your passion may have shifted over time, you can learn to shift with it, to find the power to overcome any obstacle, to work more effectively than you ever thought possible, and to leave work feeling as though you’ve barely worked at all.

RESPONSIBLE LEADERSHIP

admin — Mon, 16 Feb 2009 14:54:45 +0000

You don’t need me to tell you that change is upon us. From now on, the way we conduct business requires innovation, an excessive dose of motivation, and nose-to-the-grindstone perseverance. Oh, and it is up to you and me to change the way we do business in order to not only profit, but for some, to survive.

For you to lead your business forward, it is up to you to step up to the plate and be the leader that your team will follow. Here are three not-so-easy, but necessary, steps that other great leaders have followed to bring their businesses through all kinds of crisis.
First, recognize that it is up to you. You’ve chosen to lead, now lead. Your team members are your responsibility. If you have to downsize, you should shed tears. If one of your team members is sick, you should send Gatorade or flowers. Great business leaders have the mindset that they must take responsibility for all aspects of the business.
Second, be willing to take part in the success of your products and services. Roll up your sleeves and work in the shop or become a part of the installation team. Impart your work ethic to the troops. You are leading by example because they are watching your every move. When you show how important quality service is to the business by creating quality, they tend to follow you.
For help, pick up an old classic, “Leadership Secrets of Attila the Hun,” by Wess Roberts. Roberts gives great illustrations in how this is accomplished on a daily basis.
Finally, go against the grain. Don’t give in to the constant bombardment of media negativism. Stay informed, but be wise and discerning with the way you handle news.
For example, it is easier to market your business during the good times when the money is flowing in, your team works together, the economy is solid, and your socks match. However, the strong leaders are putting more resources than ever into a well-planned marketing campaign during this economic downturn. They know the value of planting seeds now for an abundant harvest later.

“I didn’t know you had that!”

admin — Sun, 08 Feb 2009 13:06:27 +0000

If your business is established and signs have been in existence for a period of time you want to think about this. People who come by regularly stop seeing your business and it just blends into the scenery. Adding a new sign or banner will give you a new audience will be noticed. I know, because we would get comments like “I didn’t know you had that”. You do have to tell them.

How to Advertise Now

admin — Mon, 26 Jan 2009 15:12:31 +0000

How to Advertise Now

Unsure what to cut and what to keep? This smart, 4-point checklist is your guide to recession-era advertising.
By Kim T. Gordon | January 13, 2009

When money’s tight, the knee-jerk reaction for many entrepreneurs is to cut back on advertising. Unfortunately, the businesses that stop advertising simply drop out of sight, taking these entrepreneurs from slow sales to no sales–fast. It’s a risky move many may not recover from. Rather than eliminate your advertising in a recession, cut the fat from your campaign, and focus on the right media choices for the highest ROI.

To figure out what to cut and what to keep, use this checklist to choose the right media for your business in this challenging economy.

Advertise where prospects look first.
Where will your customers look when they’ve decided to buy what you sell? A vast majority of Americans research purchases on the internet before buying online or in a brick-and-mortar store. Placing advertising on search engines may be an important part of your scaled down campaign. Other search media include trade and industrial directories, both online and in print, newspaper circulars, classified ads, and shopper sections of specialty magazines. By advertising where prospective customers look, you’ll shorten your sales cycle and lower your cost per sale.

Use media that touch prospects often.
Even when your customers aren’t in search mode, they still interact with other important media. Discover which media touch your best prospects throughout the day. Do they read a particular newspaper? Which TV and radio programs do they enjoy and at what times of the day? If you’re targeting B2B prospects, zero in on the industry publications they rely on for information. Both business and consumer prospects have favorite websites they frequent. Armed with this vital information, you can strategically place ads in media you know play central roles in their daily lives.

Put your ads in context.
Not all media that touch your prospects will be smart advertising choices. The issue of appropriate context is critical when making this evaluation. Choose media that reach your prospects when they’re in the right frame of mind to be receptive to your message. For example, your best prospects may dine out frequently and be exposed to the ads inside the restroom stalls of popular restaurants. But the location of this media may be an inappropriate context for advertising your type of business. It all depends on when and how you want your customers to think of your business. Pare down your campaign to the media that put your message in the right context, and your response rates will climb.

Advertise for maximum memorability.
The very best use of limited advertising dollars is to spend your money where your campaign can be a standout. That requires sufficient ad size and frequency. With the abundance of clutter in all major media, it can be challenging to stand out with small-size, fractional-page ads. Larger ads will give you more bang for your buck because they’re more likely to be seen and remembered. Rather than run small-space ads in many publications or websites, reduce your media choices to those in which you can afford to buy larger ads and advertise frequently. Narrow your broadcast selections to fewer radio stations or TV programs, and advertise to your core audience with frequency so your message is sure to penetrate. By the time the marketplace rebounds, you’ll be in a solid position to expand your campaign once again.

Striking the Best Work-Life Balance

admin — Tue, 13 Jan 2009 13:21:50 +0000

The Hot Topic…Striking the Best Work-Life Balance
Content provided by MayoClinic.com

For most people, juggling the demands of career and personal life is an ongoing challenge. With so many demands on your time - from overtime to family obligations - it can feel difficult to strike this balance. The goal is to make time for the activities that are the most important to you.
Here are some ideas to help you find the balance that’s best for you:
Keep a log. Track everything you do for one week. Include work-related and non-work-related activities. Decide what’s necessary and what satisfies you the most. Cut or delegate activities you don’t enjoy and don’t have time for. If you don’t have the authority to make certain decisions, talk to your supervisor.
Take advantage of your options. Find out if your employer offers flex hours, a compressed workweek, job-sharing or telecommuting for your role. The flexibility may alleviate some of your stress and free up some time.
Learn to say no. Whether it’s a co-worker asking you to spearhead an extra project or your child’s teacher asking you to manage the class play, remember that it’s OK to respectfully say no. When you quit doing the things you only do out of guilt or a false sense of obligation, you’ll make more room in your life for the activities that are meaningful to you and bring you joy.
Leave work at work. With today’s global business mentality and the technology to connect to anyone at any time from virtually anywhere, there’s no boundary between work and home - unless you create it. Make a conscious decision to separate work time from personal time. When with your family, for instance, turn off your cell phone and put away your laptop computer.
Manage your time. Organize household tasks efficiently. Doing one or two loads of laundry every day, rather than saving it all for your day off, and running errands in batches are good places to begin. A weekly family calendar of important dates and a daily list of to-dos will help you avoid deadline panic. If your employer offers a course in time management, sign up for it.
Rethink your cleaning standards. An unmade bed or sink of dirty dishes won’t impact the quality of your life. Do what needs to be done and let the rest go. If you can afford it, pay someone else to clean your house.
Communicate clearly. Limit time-consuming misunderstandings by communicating clearly and listening carefully. Take notes if necessary.
Fight the guilt. Remember, having a family and a job is OK - for both men and women.
Nurture yourself. Set aside time each day for an activity that you enjoy, such as walking, working out or listening to music. Unwind after a hectic workday by reading, practicing yoga, or taking a bath or shower.
Set aside one night each week for recreation. Take the phone off the hook, power down the computer and turn off the TV. Discover activities you can do with your partner, family or friends, such as playing golf, fishing or canoeing. Making time for activities you enjoy will rejuvenate you.
Protect your day off. Try to schedule some of your routine chores on workdays so that your days off are more relaxing.
Get enough sleep. There’s nothing as stressful and potentially dangerous as working when you’re sleep-deprived. Not only is your productivity affected, but also you can make costly mistakes. You may then have to work even more hours to make up for these mistakes.
Bolster your support system. Give yourself the gift of a trusted friend or co-worker to talk with during times of stress or hardship. Ensure you have trusted friends and relatives who can assist you when you need to work overtime or travel for your job.
Seek professional help. Everyone needs help from time to time. If your life feels too chaotic to manage and you’re spinning your wheels worrying about it, talk with a professional, such as your doctor, a psychologist or a counselor recommended by your employee assistance program (EAP).
Services provided by your EAP are usually free of charge and confidential. This means no one but you will know what you discuss. And if you’re experiencing high levels of stress because of marital, financial, chemical dependency or legal problems, an EAP counselor can link you to helpful services in your community.
Remember, striking a work-life balance isn’t a one-shot deal. Creating balance in your life is a continuous process. Demands on your time change as your family, interests and work life change. Assess your situation every few months to make sure you’re keeping on track.
Balance doesn’t mean doing everything. Examine your priorities and set boundaries. Be firm in what you can and cannot do. Only you can restore harmony to your lifestyle.

Keeping Signage at the Top of Business Marketing

admin — Sun, 28 Dec 2008 20:03:28 +0000

Keeping Signage at the Top of Business Marketing…And Its Revenue.

The hard truth is that signage is not considered by most business development experts as marketing and the reason is clear - they are simply unaware of its value.

By Thomas James CMO, The LED Sign Company

One of the top small-business-marketing websites, ranked #1 by Forbes Inc., doesn’t even mention signage. At this website alone, tens of thousands of business owners and decision makers learn about marketing… without signage. If that does not upset you, you are not in the sign business. The hard truth is that signage is not considered by most business development experts as marketing and the reason is clear - they are simply unaware of its value.

The owner and editor of the website above received a one-page letter from me about the value of signage. I got a reply two days later with the following words: “Great information Thomas. You can submit an article at anytime.” I am currently writing that article because just like with the editor (a very respected business marketing expert), education works. And if it causes 1000 people to spend more on signage, great! I want to make the pie larger. Selling bigger and better signs to new businesses is one way; having millions of existing businesses rethink signage is even better.

If the real value of signage were known by a much larger percentage of the business community based on education, research, measurable ROI data and case studies, four things would happen:

* Billions of dollars would shift from several media types that are, on average, ineffective for the typical organization, chiefly the SMB market;
* Signage would be elevated to its rightful place with regards to marketing, especially for small businesses that unmistakably depend on their 5-mile target market where up to 85% of their sales come from (SBA);
* The typical signage transaction would increase because of its higher level of knowledge and known worth;
* Business consultants, marketing sites, magazines, books, blogs, newspapers, TV and other mediums would finally embrace it as an integral part of overall marketing and include it in their core strategy with regards to business development.

The entire industry needs to work towards a common goal of increasing the proven value that signage plays in the marketing of all organizations.

After reviewing the sign industry, I would recommend three items be moved up the ladder of strategic focus. They are:

* Public and corporate education on the proven effectiveness of signage. This includes the responsibility of creating significant awareness of the position signage has in the overall marketing of a business, especially compared to other high-priced, broad-based media.
* Centralized learning support for sign companies, specifically involving measurable ROI and how it was achieved throughout the industry, including private, public and association studies and research.
* Best sales practices and strategies that focus on real value and a clients’ return on investment, rather than the current approach which normally forces the customer to base value on price, causing eroding margins and exhausting quotes.

Currently, this lack of focus is causing enormous economic loss to the trade. Many organizations don’t invest as much on signage as they should and could; the reasons to do are not usually apparent. Are sign companies responsible for educating clients? Sure we are, and we do to some extent. Do we all have the knowledge we need to be the best? No. Do we understand best practices regarding sales? No. Should we incorporate more value and education in our marketing? Yes, because value and education increase sales and margins. The customer’s results create referrals driven by value. Price drops to the 2nd position where it belongs.

Right now, there is a tremendous amount of information out there. I feel the best place to harness it and make it available to the industry, as well as use it to educate and influence the business world, can best be accomplished by the sign associations, followed by the sign companies. It must be centralized to be effective. For sign companies, the main problem is that most customers have to be educated on an individual basis and that learning becomes a part of the sales presentation. A respected 3rd party is far more effective and believable. It’s the difference between an expert telling them to do it with the facts or the media telling them it’s true, and me trying to “tell and sell”. I’d rather consult and recommend along with being highly knowledgeable in the process. I want to join the client’s marketing team.

For business marketing experts to include signage as a main marketing strategy takes time and effort beyond sign companies themselves. But their advice can and will cause thousands of businesses to position signage as one of the best ways to develop their business, if not put it front and center.

The SBA states that the average business gets up to 50% of sales from signage, 85% from within 5 miles. Highway businesses can acquire up to 95% of sales from signage. This is true despite the fact that more than 75% of all U.S businesses don’t take signage seriously. That would appeal to most business marketing experts, don’t you think? Or maybe a 60-day, 6-inch ad in the local paper or 50 TV spots (which 90% of the viewers will dismiss because your target market isn’t in their neighborhood) are considered to be worth more by marketing experts. How about a complete signage upgrade that will last up to ten years? Are they recommending that?

The U.S. Chamber of Commerce says that those who take signage seriously and make it an integral part of their overall marketing see significantly more revenue than those who don’t. I believe the Chamber uses the words “profound revenue.” Incredible, yet I have never seen that information in any business magazine.

The SBA states that outdoor LED signs increase sales 15%-150% at 10% the cost of other advertising and you pay just once, while focusing on your target market. The sales increase variance is based on choosing the right sign, creating a good messaging strategy, and traffic. Our outdoor LED sign clients average 30-40% in sales increases. Do marketing experts know about this? Many don’t. Maybe they are busy trying to improve subject lines of email campaigns or recommending some $1000 a month web statistics program with 175 reports. Important? Sure it is, but it’s secondary at best.

McDonalds spends around $100K on signage (per location) to sell a $.99 cent hamburger. For those who are not aware, their whole buildings are signs. Yet, the manufactured home dealer with great highway visibility puts up a $300 sign (selling a $75,000 hamburger) and then complains about low customer traffic. The new mortgage lender in town decides that a 2’ x 6’ painted plywood sign will suffice until business gets going; then to help things out they paint interest rates on the windows. Result image ruined. Then there’s the beauty salon that puts a sign up that is flush with the building (90 degrees from traffic) and selects colors that blend right into the surroundings. Or how about the HVAC company on Interstate 5, with 140,000 cars a day, who decides that his name is so important (but no one knows it) that he makes that font 24” and the part about what is does just 4”. Not a single car can notice his trade. I honestly would have turned down the job and told the customer why.

One thing is perfectly clear; signage costs about 10% that of broad-based media such as TV, newspapers, radio and yellow pages, and is usually a one-time investment. An important note is when you are comparing CPM (cost per thousand); you must also note the longevity of the medium. All other media stops as soon as you quit paying for it. The ROI factor of signage is much larger than just the CPM percentage differences and cost. Broad-based media also falls on deaf ears about 90% of the time.

Business owners, marketing experts and the media must become acutely aware of the value signage has. We all must begin working intensely at positioning signage as one of the top five marketing options. Permits and codes are enormously important as well as conventions where serious partnerships develop, but let’s face the facts; the average small business decision maker believes the price of signage, rather than the return on investment is king. This is based on the customer not knowing what signage can and will do for them.

Would a client invest $5000 more if they knew that a bigger or additional sign would increase sales 4%-12% based on a study of 6000 businesses? If the gross sales were currently $100,000 a month, that would mean $48-$144k more a year. Maybe they would invest $20,000 more if they knew the facts. Would they buy an LED sign knowing that they increase sales 15%-150% with an average cost of .25 cents and hour, giving them the ability to advertise products and specials 24/7? Compare that to someone holding a sign on the street for $10 an hour. The focus should be to educate them and make them see signage as an important part of marketing. The decision then becomes…how much I can afford to spend rather than how much I should pay.

Adversity gives you strength!

admin — Sun, 28 Dec 2008 19:54:46 +0000

Adversity Gives You Strength!

By John Boe

How can you stay self-motivated and productive in the midst

Freedom Saw: Cut substrates virtually dust free with the new Freedom saw from Saw Trax. The floating saw eliminates the gap between the saw plate and the top of the material, where most of the saw dust comes from.
Every challenge, setback and personal difficulty you encounter in life also brings with it the seed of equivalent or greater benefit! The key to overcoming adversity is to avoid the temptation of panic and instead, focus on finding the greater benefit. Adversity will never leave you where it found you; it will either strengthen your character or weaken your resolve.

During the early years of WW II Nazi submarines, operating in wolf packs, roamed the frigid waters of the North Atlantic with impunity sinking an alarming number of British military and merchant ships. Hitler was confident that his U-boats could blockade England and eventually starve the British people into submission.

In the summer of 1940, while the Battle of Britain was being played out over London, the Germans unmercifully sank over 300 British military and merchant ships. Prime Minister Winston Churchill, fearing the negative impact these devastating losses might have on the nation’s morale, ordered the information withheld from the public. In an effort to reduce the appalling number of casualties lost at sea, Churchill instructed the British Royal Navy to begin a study to determine what, if anything, could be done to save more lives during sea rescue.

While interviewing the survivors an interesting discovery was made. To their complete astonishment, the researchers noted that the survival rate for the younger, presumably more physically fit sailors was remarkably lower when compared to their older shipmates. The study concluded that the older sailors had a significantly higher survival rate due to the fact that they had overcome more adversity and therefore, had developed greater confidence in being rescued than the younger, less experienced sailors.

The head of the research project, Kurt Hahn, was so moved by this discovery that he created the Outward Bound program. Hahn designed the Outward Bound program, utilizing a series of progressively rugged challenges, to mentally and physically prepare young British sailors to cope with the adversity of naval combat. Today, the Outward Bound program works with troubled youth to help them develop greater confidence and self-image.

I find it interesting that people faced with similar adversity often experience remarkably different outcomes. Some people become weakened, some become hardened and some become stronger. If you place a carrot, an egg and a coffee bean into a pot of boiling water, each reacts in a completely different manner to their conditions. The carrot goes into the boiling water firm and comes out soft; the egg goes in fragile and comes out hardened; while the coffee bean turns the hot water into coffee by releasing its flavor and aroma!

While you may not fear a U-boat sinking your ship, you may find yourself challenged to stay afloat in today’s unpredictable and choppy business waters. Selling in these challenging times demands determination and personal fortitude. Having the will to persevere when times are tough is a characteristic commonly found among self-made millionaires. Are you a quitter? The last time you failed, did you stop trying because you failed or did you fail because you stopped trying?

Thomas Edison documented 10,000 failed attempts to develop the electric light bulb. A reporter asked the great inventor how it felt to have failed 10,000 times trying to invent the light bulb. Edison responded, “Young man, I didn’t fail 10,000 times trying to invent the light bulb, I simply documented 10,000 ways that it wouldn’t work.” Imagine how different our world would be today if Edison had been a quitter.

You must expect to encounter detours, roadblocks and potholes of adversity along the road of life. The next time you are faced with adversity, learn from it and know that you are becoming a much stronger person because of it!

Keep Focused

admin — Fri, 26 Dec 2008 14:06:02 +0000

By Chris Bernat - SignIndustry.com
We are facing a number of significant short-term issues, including an uncertain global economic environment, ongoing weakness in the US dollar, historically high federal deficits and real inflation in everything from the price of oil to the cost of milk. This may be the first challenging economic environment some have ever faced. So what do you as the leader of your company? Do you just sit there, stare at the phone (waiting for it to ring) and make no adjustments to your short-term business strategy? Of course not! You tweak your model and improve operations. You seek new revenue opportunities.

Louis Gerstner, the chief executive who resurrected IBM from 1993 to 2001, would often tell his senior management team that tough markets were the best markets. In addition to delicate credit markets, a likely recession and real inflationary pressure, businesses need to overcome the consumer’s perceived loss of economic control, high debt levels and general reduction in paper net worth.
The Paranoid Survive
Andy Grove, the former CEO of Intel Corp., is famous for saying “Only the paranoid survive.” He may be right. Never satisfied with his company’s dominance of the micro-processor industry, he often warned that “success contains the seeds of its own destruction.” He also recognized the prime responsibility of a manager is to constantly guard against other people’s attacks on your market position.
If you count yourself among the long-term paranoid, you may have already taken steps to protect your organization during tough times. For those of you who are new to this fear-factor, here are some strategies and tactics to ensure you and your team not only survive, but flourish in 2009 and beyond.
Diversify
Finding new revenue streams is an essential part of building security in your business. Alternate revenue streams are critical tools for tougher markets. You will continue to see companies in the digital printing market diversify. This may take the form of new markets, new customers or new products and services. Diversification also must make sense. It is not something you do on a whim. It requires planning and significant accountability. Everyone gets excited when new revenue is a priority. But excitement alone will not cause success. Leadership must help guide revenue diversification. It requires daily focus. But more than anything else, it should maximize your core competencies.
Offer Outstanding Customer Service
People don’t buy things. They buy from other people. Relationships are what separate the wheat from the chafe in tough markets. Service is the difference. Delivering outstanding service requires training and employees who really care. To foster passionate service, you should highlight when it makes a difference and empower your front-line employees to make decisions that help customers stay loyal. Customer service representatives can be the difference between growing the business and shutting the doors.
Intensify Sales and Marketing
Focus on the people who have already decided to buy from you. Tough markets are not the time to cut spending on sales and marketing efforts. It is the time to make sure you can measure the effectiveness of your sales and marketing expenditures. If your sales leadership shies away from being “measured,” it may be time to rethink who’s in charge of revenue growth.
Adopt Cutting-Edge Technologies
At the end of the day, it is all about profitability. You can increase profits without growing revenues. While it may not be easy, it can be done by creating efficiencies in operations and pulling costs out of services. It is essential that quality stay high. The Internet and mobile communications are ways many companies have improved their bottom line. Anyone with a Blackberry can understand just how much more you can do each day if you are empowered with the right communication tools.
Stay Focused
Don’t forget how you got to this point. So much of being successful during tough times is remembering how to simply block and tackle. The desire to create new revenues streams should never be at the expense of your core business. To the contrary, maintaining your core focus should uncover new opportunities to help your customers as they face the challenges of the new economic landscape.
No one expects the next few quarters to be easy, but they may help you assume a new position in the market. For those who stay focused on quality and accuracy, 2009 will be a year that helps them separate themselves from the rest of the players in their area of expertise.
If there is one last piece of advice that all companies should consider for the rest of 2008 and into 2009, it is to maintain a tight focus on customer credit. There is only one thing worse than not getting the business; it is getting the business, doing the job and not getting paid for it. Watch your accounts receivable. Don’t let customers slip on payments. Treat your customers with respect but expect timely payments in return.

Frequent or Impulse Needs

admin — Tue, 26 Aug 2008 04:40:49 +0000

Businesses designed to meet frequent or impulse needs must reach out and pull people in on the spot. Examples of these include grocery stores, gas stations, hotels, video stores, restaurants, convenience stores, and car washes.

Many of these business’s customers need to make a quick decision to stop. Therefore, their signage should be eye-catching with a brief, simple message that can be read and understood quickly. The businesses must be noticed and recognized at precisely the right time by those ready to buy. Often these businesses rely heavily on attracting tourists and need to be sure those unfamiliar with the business can tell right away what is sold there.

The typical McDonald’s is a good example. The “golden arches” are such familiar icons that the McDonald’s sign can be easily recognized long before the sign’s lettering can be read. This gives a driver plenty of time to notice the sign, make a decision to stop, and safely maneuver through traffic. An independent fast food restaurant with a poorly-designed sign that is hard to see, hard to read, and hard to understand, will have great difficulty competing for the frequent need customer even if the food, service, and pricing are superior.

If your sign is going to convince the impulse customer to stop at your business, it must be designed so that the important information is easily recognized at a glance.

People driving down the street can take in a great deal of information. Seventy-five percent will pick out the key word on a sign the first time they pass it. Make sure the first time someone reads your sign they immediately understand the most important information – what you are selling. Any additional information should be designed to keep your repeat customers interested in your sign and your business so they remember to come see you again.

Because we read from the top down and left to right, the key word, graphic, or logo should be located at the top of the sign and read from left to right. Otherwise, the reader can get confused and take longer to understand the sign’s message. This delay can mean the person who is seeing the sign for the first time is unable to read and react to it before driving past your business

Cutting Costs

admin — Tue, 26 Aug 2008 04:39:18 +0000

A number of surveys have been conducted before and after installing signage to determine effectiveness. One of these, from late 1996, involved a Los Angeles auto dealership. Three previous auto dealers had failed at the location. The new owner, Aztec Motors, spent much time, energy and money improving the building and lot.

Once renovations were complete, the new owner invested $7,400 in replacement signage that entailed one wall and one double-faced pole sign.

A survey found the new signage, not the renovations or other advertising, was responsible for a minimum of ten new walk-in customers per week, resulting in at least six additional sales per week.

It took less than a month for the new signs to pay for themselves, and the owner was able to reduce his advertising budget from $16,000 to $4,000 per month an annual savings of $144,000.

As part of your advertising you’re probably considering one or more of the following: TV, radio, newspapers, Internet, direct mail, etc. The most basic way to evaluate the cost effectiveness of these or any marketing method is the cost per 1,000 exposures. Here’s how business signs measure up to other media.

The price and life expectancy of signage varies widely depending upon the type, but let’s assume you invested in signage costing $16,500 that should last seven years. If your business is located on a street with 60,000 people passing each day, the cost per 1,000 exposures would be only 11 cents.

The same $16,500 spent on outdoor advertising (i.e.,any sign that is not appurtenant to the use of the property, a product sold, or the sale or lease of the property on which it is displayed) for 1,000 exposures would cost $0.83. A similar expenditure in newspaper advertising would cost you $1.57, while television advertising for 1,000 exposures would cost $6.60.

If you’ll remember from Table 1, only 1% of first-time customers come in because of your television ad. But 50% come in because of your sign. If you’re spending only 11 cents per 1,000 exposures to get that 50%, that’s a good use of your money.

Signs as Advertising

admin — Tue, 26 Aug 2008 04:37:38 +0000

A few years ago, a sign manufacturer performed a study of its clients to find out whether their signs were bringing in customers. The businesses surveyed were a year or less old and the surveys were conducted within 30 to 45 days after the installation of a new sign. Thousands of shoppers were asked, “How did you learn about us?”

The results, shown in Table 1, clearly demonstrate that the signs attracted half of the start-up businesses’ new customers – more than any other form of advertising the businesses used and even more than their word-of-mouth referrals.

Table 1: How did you learn about us? Number of Customer Responses
On-Premise Sign	Word of Mouth	Newspaper	Yellow Pages	TV	Radio
1,234	820	212	139	32	38
Percentage by Category
50%	33%	9%	6%	1%	1%

Naturally, as your business becomes more established, more of your sales will come from repeat customers and fewer will be directly due to your sign. But that does not mean the sign has become unimportant. On the contrary, you must constantly remind your regular customers that you are there. Even more importantly, studies show that on any given day, as many as 35% of the people passing your business have never seen it before and could become first-time customers because of your sign.

The Right Sign for Your Business

admin — Tue, 26 Aug 2008 04:37:03 +0000

Successful signage involves more than creating an attractive arrangement of logos and slogans. It is also a blending of complex elements such as marketing, demographics, an understanding of visual acuity, conspicuity, and obliquity. Complicating the task is the fact that the reader is usually moving, and the sign must be seen, read and understood in an instant.

No matter how good your product or service is, if your sign does not make people stop and shop, you will not be able to compete. In our highly competitive and media-rich world, an investment in professional sign design is worthwhile. Trained designers understand how to get the consumer’s attention. Most importantly, they know how to get the consumer to respond.

Remember, every major chain that exists today started out as a small business. Your long-term success can be shaped by the effectiveness of your street presence if it is professionally designed from the very beginning.

The right sign for your business must send the right message to your potential customers.

Signage as Marketing

admin — Tue, 26 Aug 2008 04:36:25 +0000

Signs are so widespread we hardly notice them. That is until we’re looking for one and then we only note that in passing. We don’t realize their effect on us, which is one reason why they’re so effective.

However, it is precisely because they are so commonplace that many merchants take them for granted. Obviously, most small business owners know they need a sign but they think of them as merely a marker identifying the business. As a result they are unaware of and underutilize the earning potential of signage.

In order for the independent merchant to fully realize the potential earnings of signage, he or she must look at signage not just as a way of marking the business but also as a way of marketing the business.

Your on-premise sign should identify your business, mark its location, and convey the right image of your company. But, the most important thing it should communicate is what you are selling.

Signage: Your Voice on the Street

admin — Tue, 26 Aug 2008 04:36:04 +0000

You’ve probably received a lot of helpful advice on writing your business plan, getting a loan, how to comply with the law, and even how to handle customer relations. But, until now, you probably haven’t received any information about why you need a sign for your business or how to get the sign you need.

Surprisingly, the value of on-premise signage has not been fully realized by the small business community. Most owners barely think of signs at all. If they do, they are an afterthought, a necessary expense but one that is rarely part of the budget.

By contrast, merchants who do understand the value of signage view it as an investment that will pay a return many times over. They know that a well-designed, well-placed sign can generate huge profits. And when signage is part of an overall marketing strategy, the increase in revenue is even more profound.

In fact, the U.S. Small Business Administration says signage is the least expensive, yet most effective form of advertising available to you. It can be responsible for half of your customers - that’s right 50%. And many loan companies think signage is so important that if they don’t see it included in the budget, they won’t issue a loan.

So, what are the elements of good signage? What do you need to know before buying a sign? Where do you get one? How can you reap the benefits signage offers? Most importantly, how can you maximize those benefits for your business?

First and foremost, signage can no longer be an afterthought. Businesses can’t afford to just “hang up a shingle” or throw up some plywood with painted letters. In order to compete in today’s competitive marketplace, you must think of your sign as a sophisticated, powerful marketing tool. It should work for you 24 hours a day, 7 days a week, 365 days a year, creating the first impression of your business, telling people who you are, where you are and what you offer.

In short, your sign is your voice on the street, communicating with passing motorists, convincing them to come through your doors and do business with you.

6 Reasons Why Every Business Needs A Sign

admin — Tue, 26 Aug 2008 04:33:02 +0000

Unless you are running some sort of illegitimate business it is an absolute must that your business has an outdoor sign.

The best way to let people know that you exist is to place an outdoor sign in front of your business.

Did you know that using an outdoor sign is one of the most cost-effective and efficient ways to communicate with your potential customers? Here are 6 reasons why every business needs a sign.

1. They are cost effective – Outdoor signs are one of the least expensive forms of advertisement there is yet they pack the biggest punch. An outdoor sign so valuable and important to your business.

2. It identifies you – A sign identifies you to new and existing customers. It is your introduction. It lets them know you are there.

3. It’s always working – A sign can be on the job for you all day everyday helping you get your message out and attract new customers.

4. People judge your business by your sign – Unfortunately potential customers often judge your business by the way your sign looks. So make sure you have a nice professional looking sign.

5. “A business without a sign is a sign of no business.” – That is a quote by a sign industry professional. You see many businesses have increased their business just because of the sign they had placed in front of it. On the other hand, many businesses have gone under because not enough potential customers knew there were there.

6. Society is extremely mobile – These days’ people are always on the go. Moving from here to there. As old customers leave you will need a way to let new potential customers know you exist. A sign is the best way to do that.

Why Should I Have a Business Sign?

admin — Tue, 26 Aug 2008 04:32:45 +0000

This is the question most often asked by business owners. My reply to that is “Why Shouldn’t you have a sign?” A good sign has the ability to advertise for you 24 hours a day 365 days a year. So you see, even when you are not there you can still be getting your message to your potential customers. Signs are one of the most effective yet least expensive forms of advertisement. In many cases a sign can be the difference between your business succeeding or failing. Here are 4 reasons why your business should have an on premise sign.

1. It affects memory - People are always walking and/or driving by your business. Half of them probably have no idea what your business has to offer them. If they see your sign over and over again eventually they will start to remember what you have to offer and next time they need what you offer you are more likely to be the first business to pop in their heads.

2. It acts as a reinforcer - Let’s say you have a commercial running on the radio. People probably hear about 10 times a day. If you have this same message on your sign it reinforces your other advertising efforts. It helps extend the life of your advertising message.

3. It attracts new customers - If you are having a sale or some type of special put it on your sign. People love to get a great deal so this will encourage unplanned stops and impulse buys. Most retail businesses thrive on impulse buys. These new customers could potentially turn into regulars and that could have a great impact on your bottom line.

4. It modifies purchasing habits - Advertising a great deal on a sign could cause your regulars to purchase more than they normally do. Signs are the best place for pricing information.
There are many other reasons why you need a sign for your business. Just these 4 alone can have a huge impact on your sales. Do your research and find a sign that is right for your business.

Neon Signs - Does Your Business Need One?

admin — Tue, 26 Aug 2008 04:29:10 +0000

Neon signs are a great way to attract potential customers. They are bright and easy to read. Every day you pass by dozens of businesses that use the “Open” neon sign to let you know they are open for business. Neon signs are known to increase a stores visibility. With more visibility comes more traffic which in turn will equal more profit for the business.

Though the “Open” neon sign is probably the most commonly used neon sign, you can customize them to say just about anything. There are really no limits to what you can do with your neon sign.
If you have an ATM in your business the best way to increase its usage is by placing a neon “ATM” sign above it. Are your restrooms in a hard to find place? If so the best way to direct your customers is with a neon “restroom” sign.

Neon signs are very appealing and visible from far distances. That alone is a good enough reason for every business to invest in one. A neon sign can be advertising for you all day and all night long. Unlike the various sidewalk signs that are great for use during the day, the neon sign can be read clearly during the evening. So even when you’re not there you are able to tell your potential customers what you offer.

If you run any type of business that caters to the after dark crowd, such as a restaurant, a bar or a hotel, then it is a must that you have a neon sign. How else will they know you are there and open for business?

All neon signs are customizable and considered to be very affordable. However, prices do vary depending on things such as size and color. Get a neon sign today and give your business the attention it deserves.

Role of Signs in a Retail/Commercial Environment

admin — Tue, 26 Aug 2008 04:19:29 +0000

In the North American retail economy, on-premise business signs symbolize the most ubiquitous and varied of all commercial communication systems, including television, radio, print and direct mail, and off-premise or outdoor advertising (commonly, but mistakenly labeled “billboards”). And to reiterate…they also serve to reinforce all other forms of media communication, and are capable of performing many communication functions simultaneously. It is impossible, therefore, to look at any one built environment scenario and say this is how signage works. If nothing else, the complex morphology of American retailing prevents such sweeping generalization.

The myriad types of American retail operations and sites range from the small independent freestanding store (under 10,000 square feet) to mass merchandisers, complete category stores, strip malls, regional shopping centers and retail “clusters” which are neither shopping center or strip mall. Such diversity requires sophisticated analysis of signage requirements for both the business and its customer or client, if the business is to succeed. Thus, any comprehensive business strategy must include an effective signage program in addition to site location and development considerations. The signage program may by relatively simple — a free standing sign…or more complex, reflecting the full range of communication devices, e.g., a traditional sign, plus product dispensers and displays, and signature building and landscaping.

Sign programs and regulations should take into account not only the particular message needs of both sender and receiver, but also the site and ownership specifics of the individual commercial establishment. For example, the on-premise commercial communication needs of a local “mom and pop” operation will be greater than those of a nationally recognized retailer. Because signage needs expand or contract, depending upon nearly countless variables, broad stroke regulatory treatment is contraindicated.

The signage needs of various businesses should not be viewed on a continuum, with downtown businesses at one end and major freeway businesses at the other. Instead the needs should be viewed in a rotating circularity which recognizes that at any given time the needs of one business may reach the apex and require special attention or consideration.

For example, a service-oriented business (such as a dentist’s office) that has been in the same location for many years and has an established clientele may function economically with only a sign on the door; longstanding patients (or customers) find their way to the right spot without the visual cues provided by a sign easily seen and read from the street. However, if an economic downturn occurs in the area, causing residents to move away, the need to attract out-of-area passersby in order to stay in business may become acute. On the other hand, if the economic environment remains stable, many residents will move anyway. Should the area economy improve, the increased job opportunities will bring new residents.[9] In both of these latter instances, “replacement” and “new or additional” clientele will be difficult to attract absent the street visibility afforded by an on-premise sign. Although area newcomers might become aware of the business through alternate forms of advertising, such as the yellow pages or newspaper advertisements, substitution communication devices are much less likely to increase the clientele pool than an on-premise sign visible to the newcomer passerby.[10]

For many small businesses, such as barbershops, specialty stores or local restaurants, signage and word of mouth may be the sole means of reaching new customers. Further, in many communities, small businesses offer a primary source of employment and an important point of entry into the workforce for women, minorities, and new immigrants; thus, sign regulations which help small businesses succeed serve both an economic and public policy purpose.

Long established or not, there are businesses which rely entirely on their sign to connect with their segment of the market and stay in business. The clearest example is the highway-oriented business, such as gasoline stations, fast-food restaurants, and economy motels, whose customers are sometimes completely dependent on signs visible to the highway to indicate where to get desired goods or services. As the automobile has come to dominate the urban, and especially the suburban, landscape, the increase in signage needs of the “highway” (or “point of distribution”) business has been dramatic — causing a material impact on retail site selection and development theories.

What’s that sign out front really worth?

admin — Tue, 26 Aug 2008 04:17:04 +0000

A properly designed and placed sign is the most effective advertising investment a carwash owner will make. Without it, a site cannot function at its full economic potential, which in valuation terms means the site cannot reach its “highest and best use.”

Generally, appraisal of commercial real property addresses three locational factors - visibility, accessibility and parking.

Since the sign’s contributory value to its site is the concern, determination of that value will concentrate on the so-called visibility factor.

For our purposes, we break the visibility factor into two components: (1) the site’s overall visibility, and (2) how useful the sign is to passing motorists - how easily it can be seen, understood and safely reacted to from the road.

For a carwash, the on-premise sign provides a great number of “message” exposures to potential customers driving by - usually at a fraction of the cost of other advertising media.

Signage appraisal is usually concerned most about the cost to replace the visual messages or exposures provided by a sign. As part of the valuation, the appraiser must eventually answer three related questions:

· What percentage of the sign’s target market is exposed to the message?

· How many repetitions of the message are received by the viewer?

· How much does it cost to reach a given number of people?

Answer these questions and you can generally determine a sign’s cost-effectiveness compared to other media and establish its true value based on net revenues attributable to its presence.

To determine the value of the sign to your business and use the information to the best advantage, consider the case study of two carwash signs as you learn about three traditional approaches to valuation.

Income approach

This approach involves anticipating the revenues a property interest can conceivably generate and relating the income stream to value.

In most cases, it begins with an inquiry designed to show what percentage of customers in a given period were prompted to stop simply because they saw the sign.

This information is usually gathered from point-source surveys. Here, however, we rely on the case study to demonstrate the approach.

Income analysis utilizes capitalization rates, which work much like the interest on a bank deposit. If you want to earn $10,000 in interest and the bank offers a 10 percent “cap rate,” you must deposit $100,000. If the bank offers only 5 percent, you have to deposit $200,000 to get the same return.

In the example of the case study, the increase in annual income demonstrably attributable to the sign is $135,000. An operator looking to raise that amount through a one-year investment paying 9 percent interest would need $1.5 million in principal.

However, we are appraising this sign not for investment purposes but to determine its present worth to the business.

The value of the sign to the business can be calculated by determining how much additional revenue is generated each year because customers patronize the business because they saw the sign.

In the case study used here, the wash generated an additional $135,000 annual once the sign was in place. We assume the net before tax dollars is half of this, or $67,500 annually. If you consider the sign has a life span of 7 years, you might be tempted to just multiply $67,500 by 7 to get the total value of the sign during its lifetime.

However, the sign is paid for today. Therefore, the value of the money earned by the sign must be calculated in the value of the money today, even if the money is not earned for years to come.

The present value of money earned in the future is calculated using the following formula:

PV = FV

(1+CAP)ⁿ

Where PV is the present value of money earned in the future, FV is the future value of the money, or what it is worth when it is actually earned, CAP is the capitalization rate or interest rate, (in this case it is 9% or 0.09) and n is the number of “periods” from now the money is earned. In this case, the “periods” are years.

One year from now, the wash will earn an additional $67,500 because of the presence of the sign. What is the value of that money today?

PV = $67,500 = $61,926.61

(1+.09)¹

If you invested $61,926 today at 9 percent annual interest, you would have $67,500 in one year. Therefore, the $67,500 earned one year from now is worth less than $62,000 today. The $67,500 earned in the second year only has a value of $56,813.40 today. The calculation should be repeated for each year in the life of the sign. Each year, the value of “n” increases in the formula.

After you obtain the present value of the additional revenue generated by the sign each year, all the values are added together to get the total value of the sign today.

During the 7 years of its life, the sign will generate the equivalent of approximately $340,000 in the value of money today.

Market comparison

Using this approach to determine what the market will bear for similar property, the appraiser inspects sites with varying street-exposure potentials, obtains square-foot rental figures and makes comparisons.

The value of a site’s “visibility” is reflected in the fair market value of its real property or the rental or lease rates it commands. Location, parking and accessibility are also dominant appraisal factors, but visibility considerations can be extracted from other valuation indicators.

Under the basic formula for this approach, Annual Square Foot Rentals Based on Street Exposure is divided by the Cap Rate ^{Life of Business} to get the Present Value of Street Exposure.

Looking again to the case study, the lease rate for the 5,000-square-foot facility is $2 per square foot, which amounts to a $2,000-per-month “visibility” premium over medium- to low-visibility sites in that area that lease for $1.60 per square foot.

High-visibility site: $2 per sq. ft. x 5,000 sq. ft. = $10,000/mo

Low-visibility site: $1.60 per sq. ft. x 5,000 sq. ft. = $8,000/mo

Difference: $ 2,000 per month or $24,000 per year

Applying the formula to this information and assuming a capitalization rate of 9 percent and a 25-year life for the business, we can establish the value of the visibility component of the subject site.

Using the same formula used to determine the value of the sign we can determine the value of the high visibility of the location over the course of the 25 year life of the carwash. In this case, however, the future value of the high visibility is $24,000 annually, while the capitalization rate is still 9 percent. Repeating the formula for each of the 25 years, (and increasing the value of n correspondingly each year) and summing together the present value for each of the 25 years gives you a total present value for the price of the high visibility of the location of nearly $236,000 during the life of the business.

Although the carwash is located on a busy arterial, it’s set far enough away from the road that without its sign much of the premium visibility component would be lost. For all intents and purposes, the sign is the visibility component of this site.

If a sign visible to the street could not be placed on the site, the landlord could no longer command premium rental rates, and would need at least $236,000 in the bank earning 9 percent interest over a period of 25 years to recoup rents lost to the substantial impairment of the site’s visibility.

Conversely, the lessee would require the same amount and same interest rate deposited over the same period of time to recoup sales lost because of a lack of signage optimally visible to the street.

Cost of replacement or substitution

This approach to valuation estimates the cost of replacing or substituting an existing property interest with another of equal value.

In signage appraisal terms, you’re not considering the cost to replace the sign itself, but rather to replace the sign’s communication abilities by using other media.

To arrive at comparable costs per 1,000 exposures for signage and other advertising media - television, radio, newspapers, yellow pages and direct mail - you primarily rely on “frequency” measures. Frequency data addresses how many times a viewer, reader or listener is exposed to an advertiser’s message.

A newspaper advertiser, for example, can accurately determine how many people were exposed to an ad, based on the number of newspapers sold.

It is harder to determine exposure frequency for on-premise signage because drivers who are just passing through may see the sign only once, while drivers living or working close by are exposed to the sign many times.

Although traffic counts reflect the number of vehicles daily passing a sign, this number must be adjusted, using tested formulas, to account for the infrequent passerby or viewers who may see the sign but are not potential consumers. Origin/destination studies offer reliable data in these circumstances.

Replacement cost analysis for signage is one of the more complicated evaluations. However, a reasonable estimate can be made based on original costs (design, production and placement), plus maintenance costs and depreciation.

The two-sided sign in the case study, for example, originally cost $25,000. With an amortization/depreciation period of seven years, its monthly cost is $298.

The estimated traffic count is 60,000 cars per day or 1.8 million per month. Divide that monthly count into the monthly cost and you get a figure of $0.00016 per 1,000 exposures.

The cost to replace the sign with a double-faced billboard can be estimated easily from a billboard directly across the street. The local commercial rate to lease the billboard is $500 per face per month for “posters” and $2,500 per face per month for “painted bulletins.”

Using the formula above, the cost per 1,000 exposures for a “poster” is $0.00055 - five times higher than the on-premise sign. The “painted bulletin” cost of $0.0028 is 15 times higher than the cost of the sign.

Suppose the carwash in the case study suddenly lost its sign and had to lease the billboard across the street? Assuming a 25-year remaining life for the business, the owner would need $595,000 in the bank at 9 percent in order to fund the $60,000 annual lease rates for billboard space necessary to replace the communication and design power of the on-premise sign.

Without such an investment, the cost of billboard replacement signage would eventually erode profits to the point of business failure. (If the owner went to a less expensive “poster,” the amount needed to fund annual lease rates would be $120,000 at 9 percent, but the exposure would not be as effective as that of a painted bulletin.)

If you find the cost of replacement billboard signage untenable, the cost per 1,000 exposures of other possible substitutes is even less palatable.

Given the costs of other media - all off the premises - it is easy to see that the on-premise sign is an effective and inexpensive way to expose a carwash to potential customers who can immediately accept its invitation to stop.

But even the most successful operators sometimes fail to fully utilize the visibility component of their site.

They spend lots of money on architecture, color schemes, landscaping and window displays, then forget that a well-designed and appropriately placed sign provides more visibility and “street expression” than all other visibility factors combined.

And the sign does it at a fraction of the cost and with a maximum return on investment.

The appraisal methods and results outlined here clearly show that the study sign, which represents most of the visibility component of the site, has a minimum present worth of $250,000. With a total assessed value of $1.5 million for the site - real property and improvements - the sign represents nearly 20 percent of total value.

The savvy landlord knows visibility translates to higher rents. When you as an operator are paying a premium for visibility, the site must be brought to its maximum visibility potential.

That task can be accomplished, for less than pennies a day, through a reusable resource that just keeps on giving - the on-premise sign.

Advantages of Signs To A Business

admin — Tue, 26 Aug 2008 04:05:32 +0000

A Sign is Necessary to the Success of a Business:

Many industries can attribute a large percentage of business to their signs. Some fast-food outlets attribute as much as 80 percent of their business to their on-premise signage; the travel industry 30 percent; gas retailing 50 percent; and hotels and motels 50 percent. A visible, readable sign can make the difference between profit and loss for many businesses.

Advertising Cost Benefits:

When compared to other advertising costs such as radio, newspaper, television and direct mail, an on-premise sign is inexpensive. For example, the cost per 1,000 adult exposures with a sign is only a few pennies for 24-hour-a-day coverage. In addition, an on-premise sign cultivates cumulative, long-term awareness of a business, stimulating repeat or “brand-loyal” buying of the products and services offered.

For businesses with a limited advertising budget, a sign is an inexpensive method to maximize returns per dollar spent.

Financing:

A business plan should include signage as a major part of the marketing strategy. Because signage is vital to a small business it should be included in any loan package. Your sign is a permanently visible part of your business and should be considered as an investment. Signs are the most efficient, effective and consistent revenue-generating device for small business.

What Signs Can Do For Your Community

admin — Tue, 26 Aug 2008 04:05:03 +0000

Signs enhance the environment by making certain zones of the city more attractive and dynamic and giving them a particular atmosphere. Because the environment is so important, quality signage conveys an image of responsible citizenship by a business owner.

Signs perform two major community safety functions: crime reduction and traffic accident reduction. A well-placed, visible, attractive sign helps direct vehicular and pedestrian traffic, allowing ample time for driver decision making, thus reducing the potential for traffic accidents. Government studies found highway vehicle accidents actually decrease at intersections where there is commercial signage.

Ambient lighting from signs is a major crime deterrent in urban areas. Police reported a 30 percent rise in crime when downtown signs were turned off during the energy crisis of the 1976s. People feel safer entering well-lighted commercial areas.

What Signs Can Do For Your Business

admin — Tue, 26 Aug 2008 04:04:32 +0000

Information And Directional Functions:

Signs identify a business and provide information about it. A noticeable and readable on-premise sign not only alerts the public, but tells them about services offered, prices and hours.

Service Trade Area:

A trade area is the marketing vicinity from which a business owner draws customers -usually within a half mile to a mile of the business. Trade areas differ in shape and size depending on the business and its reliance on transportation networks and may vary seasonally. A sign communicates important information to consumers located in or passing through the immediate trade area.

Build Image:

Signs are an effective marketing tool in building an image for your business and in helping you identify the market segment you are trying to reach. Through materials and design, a sign can appeal to a given group of potential customers. Color and lighting effects can enhance the impact and psychological response to your business.

Enhance Advertising Recall:

Signs reinforce other advertising expenditures by repeating commercial messages. Many national firms incorporate their logo into their mass media advertising campaigns, such as television, thus increasing product or service awareness.

Generate Impulse Business:

Signs generate business by catching the attention of visitors and newcomers who traverse a trade area. Studies show approximately 50 percent of all consumer items are purchased on impulse sales directly attributable to signage drawing consumers to the point of purchase.

THE VALUE OF A SIGN

123 — Thu, 14 Aug 2008 18:11:09 +0000

The number one reason for closing their doors is inadequate exposure to the buying public. There are various ways in which a business can assure adequate exposure, but the undisputed best way to get that needed exposure is by having the right sign in front of your business.

Most businesses, regardless of size, depend heavily on signage to support their branding and create more local awareness. Signs help people find you; attract people who pass your establishment; present an image of your business; and tell potential customers what goods or services you offer. Signs are the primary form of advertising for small business.

On-premise business signage differs from outdoor advertising billboards which market national products. On premise signs tell people who you are and what goods and services you sell. Signs are a form of landscape art enhancing your commercial area and surrounding environment.

Signs are a link between transportation and communication. Each year, 40 million people travel more than 1.7 trillion miles by automobile. Your sign is the most effective way of reaching this mobile group of potential customers.

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Advantages of Signs To A Business

A Sign is Necessary to the Success of a Business:

Advertising Cost Benefits:

Financing:

What Signs Can Do For Your Community

What Signs Can Do For Your Business

Information And Directional Functions:

Service Trade Area:

Build Image:

Enhance Advertising Recall:

Generate Impulse Business:

THE VALUE OF A SIGN

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