- Mike Prongue
Unless your business is selling gold at ½ price, or pouring concrete
for free, chances are you have competition. Advertising is not an
option, it is essential.
probably already agree that LED Signs are the most effective way to
advertise, providing a very low cost per exposure and leaving radio, TV
and newspaper in the dust. You’ve done your homework and have reviewed
domestic manufacturers who can supply you with projects that “wow” the
customer with a low failure rate. You’ve probably sold a few, if not
several projects but need a little more perspective on the common ways
to sell LED Signs.
Three approaches are spotlighted here:
Dollar per Day-
This simple approach takes the cost of owning an LED Sign and expresses
it to the customer in dollars per day. You must assume a period of
time, for example 36 months, in which the sign will be paid for and then
just do the math:
LED Sign, to be re-paid in three years = $10,000/ (12months x 3 years) =
$277 per month, or $277/ 30.4 (days per month) = $9 per day.
Can you customer afford $9.00 per day? They may have that much in spare change in their car’s ashtray!
Reallocation of Existing Ad Budget-
Every business advertises. Unfortunately many business owners think
that their purchase of an LED Sign must place an additional burden on
their existing advertising budget. Customers are quite surprised by your
suggestion to simply reallocate money currently being spent in some
less-efficient medium such as radio, or some other broad-based
advertising option (newspaper or TV). Since the majority of customer
typically live within 5-10 miles of most small businesses, why spend
money to target customers on the fringe of a radio station’s broadcast
range (30-50 miles plus) who will never travel to the customer’s store?
Where can the customer find that $9.00 per day?
simple probing question, “How do you currently advertise your
business?” then a follow-up of “May I ask how much you allocate per
month for this?” Ask them if they’d consider reducing their current
advertising program by enough to fund the LED sign. Go slow, here… run
before walking. Let the customer see the results of the LED sign.
Return on Investment-
How much of a sales increase does the LED sign actually create? A
recent blog covered this topic and is available in its entirety here- Full Blog.
business does $500,000 per year in sales and has a 35 percent sales
margin. Adding a LED sign may then increase sales to $575,000 per year
with an income increase of .35 x $75,000 or $26,250 in profit before
taxes. The LED sign cost $25,000 to buy and install, so they put an
extra $1,250 in their pocket, and completely paid off the LED sign. The
following year there is no LED sign to pay off so any increase in sales
makes an even bigger impact. In this scenario the sign pays for itself
and actually drives additional sales.
A few additional ideas to sell LED signs:
a customer-friendly interview sheet so you can present a plan back to
the customer from the information they will provide.
a relationship with a Commercial Leasing Company. Typically they will
act on your behalf and approach the customer to assist in financing the
project. Beware- interview many Leasing Companies, there are differences
and they are not created equally!
a digital image of their existing outdoor display. Photoshop an LED
sign into the target location to show the customer what the project
would look like before approaching the customer.
build-out of the outdoor LED sign industry is just now starting to heat
up. There are millions of projects to sell across the country.
your approach, collect the presentation tools you need and participate
in this modern-day Gold Rush! But beware, and choose wisely because
there is much Fool’s Gold, in “them thar hills!”
all posts/thoughts/writings are strictly the viewpoint of me and me
alone and do not reflect nor speak for Vantage LED’s beliefs, attitudes,
thoughts, etc. unless specifically stated.