Digital Signage Need to Know: Financing & Leasing Options for DS

-Deacon Wardlow

While we can debate ROI (Return On Investment), ROO (Return On Objective) and other alphabet soup terms on why DS (Digital Signage) is awesome for both profit and non-profit organizations, the big ticket cost is hard to avoid. People still get sticker shock even when they understand the value and see the importance of having a DS solution for their organization. Showcasing the value, ease-of-use, and overall quality of a system proposed is important, but a lot of people overlook a simple means to drop the initial investment cost - Financing and Leasing.

As a dealer (and the client) - it's good to have a deck stacked in your favor. The best way to do this (aside from having the best source for your DS system) is to have financing and leasing as an option. about 1 in 3 companies given the opportunity to finance or lease a Sign System with LED signage (and even interior LCD/DS systems) will take the option, not offering this means there are a lot of opportunities lost for both dealers and clients.

I spoke with a couple of financing/leasing agents and here are a few key points of interest from our chat:

Jay Driscoll (Geneva Capital):
Within the last year the lending environment has opened up and there are many banks and other lenders who have been sitting on capital for a few years and are now looking for places to invest. LED Displays are good collateral and more lenders are willing to finance them. Financing makes digital signage much more affordable for a business. Instead of having to pay for it in one lump sum they can spread it out over a period of time, up to five years. This is a huge benefit because they can use the income the sign will generate to pay for it instead of using money they have already earned. 

Leslie Durocher (Advantage Leasing):
In the digital signage marketplace, I feel a major hurdle to overcome is competitive pressures. With many more shoppers and easy access to information it is important to be in the relationship building business. Small business owners are looking for their competitive edge however do not always have access to affordable capital for their purchases. Equipment leasing can help mitigate the risk of having minimal outlay of cash until the business achieves its desired ROI whether that be increasing efficiency (sales), saving costs (energy/other) or another objective the company would like to meet with DS.

There are a lot of leasing companies out there (these two are people I've met with directly and have had a good rapport (and heard good things about) in the industry. When looking at the bottom line final cost to invest with DS, it's definitely worth adding another line at the bottom showing financing/leasing options. The more options available for a client, the better the chance their organization can benefit from a DS system (and avoid sticker shock syndrome). Stack the deck in everyone's favor and look at leasing as an option for your business and clients.

Please comment here or send questions or requests for information to deacon@vantageled.com. Vantage LED has white paper resources and more educational material on the website (http://www.vantageled.com), please check it out when you have a moment. Note 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 noted.attitudes, thoughts, etc. unless specifically noted.

Digital Signage Need To Know: Your Customers Return The Investment You Make In Them

-Scott Hofheins

The outdoor LED sign industry has been plagued by a “sell it and forget it” reputation that many sign organizations must fight with on a daily basis. Some believe that doing “just enough” to close the sale, install the sign, and collect the check is the most profitable approach. But the good ones see the value in maintaining a supportive relationship with their customers before and after the sale. They invest in their customers, and their customers invest in them.

Why?

There are a variety of reasons why individuals or organizations practice either approach. Experience in the industry, general approach to business, organizational skills (or lack thereof), and quality of vision are all factors. But regardless of why, at the end of the day you have to ask yourself: Are you hurting, or helping the industry? Your customers? Your long term success?

Quality Success

By success, I mean real, honest, quality success. Not just big numbers, important as they are, but the the quality of your work. Do your customers stand by you; will they refer you to others, are you comfortable directing potential accounts their way without hesitation?

All organizations have their good days and bad days, smooth projects and rough projects. This is unavoidable, but the quality of your success, and the success of your customers relies heavily on how you learn from the bad days and improve on the rough projects. An important part of this is truly investing in your customer after the sale.

Knowledge and Support

Learn about and fully support the product you sell. That sounds like a no brainer, but unfortunately there are many in the industry who learn just enough to craft a sales strategy, then hit the road. I discussed this in my previous article about implementing a successful LED sign program. LED signs don’t go away after the sale. Your customers will see them everyday, for years and years. They should be thinking positive thoughts about your company every time they see that sign.

This will not happen if you cannot support your customer. A good partner/supplier is an essential part of your team; they can offer resources, sales support, and customer support your customers in addition to a quality product. However, you are the still the face the customer see’s when looking at the sign. You are the one they shook hands with and chose to do business with. The more you own that, the better your quality of success will be, long term.

This means investing some time and effort in training your personnel on the technology, customer service, and support for the LED sign. Auto mechanics had to learn about onboard computers to continue to compete in the market. Those who did not, ultimately failed. The same is true for LED signs. The technology is not going away, it is here to stay and will only get more sophisticated as time moves on. Adapt, Execute and Succeed.

Your Program

Develop a program for your customer after the sale. What happens after an installation? Are you taking care of them directly, are you connecting them with your partner? Who do they call for support, and do they have the number? Are you providing them documentation and support materials? Are you training the customer directly, or leveraging your partner? These are important things the you must not overlook. Have a plan of action and give your customer the tools, and people they need to succeed.

Raise the Bar

When you set the bar high, and let everyone know you’re doing it, you force the competition to do the same. They may not be as prepared as you are to make that investment. They may not have have a supplier that can back them up, and support their needs like you do. Go above and beyond for your customers, and don’t be humble about it. Share your experiences and let everyone know you are the go to guy for good service, and a quality experience. Build your business, improve the industry, and support your customers.

-SH

I hope this post has been informative and helpful. As usual, I welcome ALL constructive comments. Please feel free to comment and add anything I’ve missed, or additional tips you may have regarding this topic. Please visit www.vantageled.com for many other resources, white papers, and of course: Great looking LED Signs!

**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.

Digital Signage Need To Know: Full Color LED Signs vs Single Color Red or Amber

-Scott Hofheins

Full color LED sign,or single color (monochrome) sign? Decisions, decisions; what is the better investment? This is an important question presented to many potential LED sign buyers that will have long term consequences. Traditionally, single color signs are less expensive and you can get a larger physical size for the same amount. Unfortunately this is where the benefits end, and the reality of the current trends in LED signage begin.

Look just above the following pictures, not directly at them:

Which one draws your attention more? For most people, it will be the color graphic. Human instinct tends to focus on the most prominent object in a given area, perhaps an ancient survival tool used long ago. The public is going to make the decision to look at your sign, based heavily on their peripheral vision.

Which advertisement looks more appetizing? Its a proven fact that colors communicate specific messages to the human subconscious. Fast food companies like McDonald's and Wendy’s have been capitalizing on this for decades.

Which message communicates love and peace more effectively? Its not just corporations that can use colors to maximize the effect of their message. Supporting graphics, and colorful text add much more meaning to the LED sign content.

Separate Yourself

In a world of static signs and manual copy boards, single color LED signs create quite an impression. However, in a world of higher resolution full color LED signs, single color signs just don’t stand out like they used to. The public is much more picky about where to divert their attention.

This is not to say that single color signs are completely out of the game, far from it. They still have some very effective applications that focus on pure data delivery and where viewers are somewhat captive. Locations like factory floors, outdoor way-finding areas, stock tickers, loading bays and security checkpoints are all great examples. However, when it comes to demanding the attention of the public, full color signs are the way to go.

You want to separate yourself from the others. Drivers have plenty to look at, why choose you? By using a color sign, and rich content, you give them the push they need to see your messages. It’s not just text anymore, they are seeing close up shots of great food, great products, or important religious symbols. Simple text advertisements are replaced with a fully branded call to action, colorful and exciting.

Investment

The cost gap between full color and single color is continuing to close. New technologies, manufacturing techniques, and the proliferation of LED signs across the globe have been extremely helpful in making these signs affordable to churches, schools, small businesses and municipal organizations everywhere.

This means that the extra investment in a full color unit is much more valuable (in most cases) than the money you would save on a single color.  If you intend to advertise anything on the sign including products, your organization, or offsite ads, you're going to want to lean toward a full color unit, especially if you are in a high visibility location.

An LED sign is a long term investment, and it’s worth a little more upfront cash to ensure a maximum return on the investment over the lifetime of the sign. I recommend you really look at the reasons you need an LED sign. Are you trying to draw attention to your location? Are you advertising products, people, events or righteous path? Is your sign have access to a large number of potential patrons or advertising partners? If the answer is yes to any of these, seriously consider a full color unit.

-SH

I hope this post has been informative and helpful. As usual, I welcome ALL constructive comments. Please feel free to comment and add anything I’ve missed, or additional tips you may have regarding this topic. Please visit www.vantageled.com for many other resources, white papers, and of course: Great looking LED Signs!

**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.

Digital Signage Sales 101: The cost of a system - Good/Quick/Cheap... Speed, Quality, and Price with LED Signs/DS Solutions.

-Deacon Wardlow

We've all likely been down this road with a client before in the sign industry. The client wants the best product with the most features at the lowest price possible. When I got started with custom signage, I was given an old photocopied image which had obviously made the rounds in fax and other forms over the years. On each side of the triangle was a single word. "Good, Fast, Cheap." At the bottom it simply stated, you can only pick two. Let's take a deeper look at the triangle of Quality.

Speed:
When you're looking for quality, speed isn't usually an option. If I want something which'll get me what I need (not necessarily what I want) and my time is limited, I'll turn to fast food. Is fast food good for me? No, not in the least. It is quick and cheap though and it meets my immediate needs. I'd be better off planning my day a little better and going with an option which takes a little more time but has a better overall payout/experience. Digital Signage (DS) is the same. Sometimes we need a quick fix, but we have to look at the overall cost. It may be better to place a rush on a quality system and pay for it than buy something which is ready now, but is a lower-end solution. Sometimes, businesses can get caught up in the expedient "need" and the result is not what they really wanted, it's what they got.

Good/Better/Best:
Almost everyone wants the best product at the best prices. I have a friend who scopes out "Black Friday" and "Tech Monday" sales for November MONTHS in advance to save a few hundred dollars on the new TV/Stereo/Computer/whatever. With time on your side, you'll often find it's possible to get a quality system at a fair price. Sometimes it's not always about the timing though. DS is expensive (the lowest end LCD indoor solutions are still several hundred dollars and the higher-end interior solutions and/or exterior LED Signs can be hundreds of thousands if not millions of dollars in scope). We're not going to kid anyone by saying the overall cost for the investment is low. As the "go to" people in the industry, we can give clients a "good/better/best" approach to options for their solution. We can (and should) present options which will meet their immediate need and be "good" for the long haul and an option which meets their need now AND will be a solid solution years down the road. Technology improves all the time and the only thing we can do is work to stay ahead of the curve and get the best system not just for now, but for the five, eight, or ten years down the road when the system will still be up/running. Nobody likes to hear their system looks old/dated after only a few years after it's been installed.

Price:
Here's the tricky one. I get this question quite often, "How much do 'those' things cost?" In response I'll pull out a quarter or ask if the person has a new quarter on them. The face of the new quarter, that's the value (where it says, "Quarter Dollar" at the bottom). The back, that's the value (the state, the slogan, whatever). Digital Signage is a lot like the quarter. At first you only see the price, that dollar tag which can be as low as a few hundred dollars and as high as several million. The thing to think of is what's the value? The LED sign which costs a business $10,000 is an investment which will net an instant return by growing their business and brand and will often have a return over the lifespan of the sign which far exceeds the initial investment cost of the display or DS solution itself. A "regular Jane/Joe" would see the cost as excessive (it's better for me to buy a 50" flat screen than a DS solution). A business/community gets a lot back for their initial investment with DS. The question asked isn't really, "how much will this cost?" I've learned the real question is often, "What is there to gain by having this solution?" Answer the second question and the response to the first question is much more appealing.

LED Sign manufacture and DS solutions have come a long way over the years, but a good system still takes some time to produce. When you're on the buying-end of the solution, make sure to keep the "best two" in mind when reviewing manufacturers and sources for DS systems. If the company is promising a "trifecta" of "Good/Quick/Cheap" ask yourself if the "cheap" part isn't just money but the system itself. Is this something which will carry you and your company for 5-10 years or will you be carrying that system once it's up/running?


-DH

*I invite you to comment here and/or email me directly with requests at deacon@vantageled.com. Vantage LED has white paper resources and more educational material on the website (http://www.vantageled.com), please check it out when you have a moment. Note 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 noted.

Digital Signage Sales 101: Stop selling and start solving - Customer Centered Selling

-Deacon Wardlow

In previous blogs we’ve discussed sales approaches for Digital Signage (DS):
-Short term gain, long term costs (cost of a "cheap" LED Sign)
-Is an LED Sign (or any Digital Signage) an investment or a purchase?
-Selling the value of a Digital Signage Solution (LED Sign, LCD, or other)
-LED Sign Sales: Closing Techniques

Problem - solution. This is the very heart and soul of sales. Regardless of what we tell ourselves, we are creatures of habit. Few people enjoy change because change means putting time and effort in where we’d rather focus those energies elsewhere. When a salesperson comes in with a new product/service, that salesperson is really saying, “It’s time to change things up!” If the client doesn’t see a need, they’re not going to be very open to the sale.

Do you want to see a better turnaround with your sales? Stop selling! Stop throwing numbers at people with no value attached. Even when you have value and the best approach in the world, it’s empty unless you’re bringing something to the table to solve the client’s problems. Diamonds may be a girl’s best friend, but they won’t improve gas mileage or save someone time in their day...

A salesperson is, first and foremost, a solutions provider. The best salespeople have a solution to help clients quickly overcome whatever obstacles they’re facing and they’re going to work with them to ensure the solution is a good fit. The sale isn’t about the product/service, it’s about the need for them. If there’s no need, there’s no sale and the salesperson is wasting both the client’s and their own time.

Robert Jolles wrote the book Customer Centered Selling, this is a staged approach to developing a relationship and focusing on the customer rather than the product/service:

1. Satisfaction/Research
Most clients are happy with what they have (thus the lack of a desire to change). This is the salesperson’s opportunity to research the customer:
-What problems will be addressed by the product/service?
-Who are the influencers for a purchase decision?
-Plant seeds to build relationships to help a sale later on.

2. Acknowledgement/Analysis
Once the salesperson has spoken with the customer, they’ve likely revealed a problem which needs to be solved. The client might not see the problem as something which needs a solution and will happily spend a lot of time at this stage. Work to get the client past this stage:
-Refine the problem by identifying the nature of the issue(s).
-Define the full extent of the current problem and how it possibly affects other parts of the business.
-Ask probing questions to get the client to realize the pains the problem causes now and will cause later.

3. Decision/Confirmation
The client should now see the full extent of the problem, now it’s up to the salesperson to outline the main issue which relates to the solution(s) available.

4. Criteria/Confirmation
Quickly verify the customer wants to solve the problem, check for concerns and ensure the client is ready to move forward.

5. Measurement/Specification
When the client is ready to move and open to a solution, the salesperson will guide them towards a specific solution and discuss how that solution will be applied (to show the value/return).

6. Investigation/Solution
Here’s where the salesperson gets an opportunity to shine and be a solutions provider. Using the F.A.B.E.C. sequence:
-Show Features which meet the customer needs (prioritized in order of importance)
-Demonstration additional Advantages
-Describe the Benefits of the solution
-Explain how it works (more is less, don’t oversell)
-Confirm they agree the solution is a good fit and they understand what’s been presented

7. Selection/Close
The benefits of the solution are summarized (Summary Close) and the salesperson asks for the sale (using whatever particular closing style preferred). This is the time to discuss logistical details and reassure the customer the decision is a good one.

8. Reconsideration/Maintenance
The sale isn’t over with a sale. This is the key time for the salesperson to keep an eye on delivery, setup and training. The salesperson should keep in touch with the client to ensure the solution really did solve the problem. Staying in touch enables the salesperson to strengthen the relationship as well as spot future opportunities.

When salespeople focus on the customer, the sale will come naturally. You’re either part of the solution or part of the problem.

*I invite you to comment here and/or email me directly with requests at deacon@vantageled.com. Vantage LED has white paper resources and more educational material on the website (http://www.vantageled.com), please check it out when you have a moment. Note 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.

LED Sign Sales-- Why Cheap LED Signs Sell Well But Fail

“There is nothing in the world that some man cannot make a little worse and sell a little cheaper, and he who considers price only is that man’s lawful prey.”

-John Ruskin

My very first night in College was an Economics 101 class. The professor took the chalk (yes chalk) and wrote the Acronym on the blackboard “T A N S T A A F L” and then turned around and asked the class “who knows what this means?”

The answers from the class came slowly. First there was “nothingness” followed by a protracted round of cricket chirping. We thought he’d taken leave of his senses and not a single hand went up.

 “It means there ain’t no such thing as a free lunch,” He said, very proud of himself. I thought about it and nodded- true. 

In my humble blogger opinion, there are two reasons why “Cheap” LED Signs are sold:

1. The need for more technical understanding of a quality LED sign and what benefits are created for the customer by these advantages. 
2. Denial of the TANSTAAFL rule and the John Ruskin observation on the part of the seller or buyer.

When I write a blog, there is one concept I attempt to impart- Not all LED display are created equally. They may have similar characteristics- LED modules, a control system, some kind of cabinet and a method to communicate. But, if you recall the recently departed automobile brand “Yugo”, it had 4 wheels, an engine and a body. But when you looked at it or drove it, it really did not have any measurable “value”. How many proud Yugo owners wrote about their cars in Car and Driver  magazine?

The LED sign industry is simple in some ways, but if the seller does not possess the technical knowledge to explain why a USA produced brand that has UL Certification and a user-friendly software system with professionally produced content may be a superior choice over other imported brands lacking in these areas, then reason #1 applies. 

It’s easy in the short-run to make the LED sign sale on price alone, but much more difficult in the long-run to dispatch a repair truck every week to the job site and deal with the wrath of the customer.

Customers, unschooled in LED sign science, and looking for a quick-cheap way to do on-premise advertising,  may think that there is such a thing as a “free lunch”. Perhaps, more likely, is that they believe that the LED sign industry has outgrown the “John Ruskin rule”. The customer may think that the LED sign industry is similar to the Wal Mart TV department where you walk in and all the TVs look alike and seem to perform the same. The select a LG or a Sony or a Vizio and take it home and plug it in and it works for years without problems. 

The LED sign industry has not been commoditized. We do not sell salt and wheat. LED signs are not all the same despite what the "Shenzhen Telegraph" may be pounding out. 

A simple example of the impact of this quality difference- if the LED modules last 100,000 hours (11 years) but the power supplies and the control system fail in 30,000 hours (3 years, or so) due to inadequate design then what good is the 100,000 hour warranty on the LED modules? The sign has failed in 3 years.  If the LED display does not have professionally produced content, and the messages displayed on the LED sign next to the 80,000 car per day highway can’t be read… what good is it, at any price. Not all LED signs are the same.

LED signs are workhorses. They electronically plow every day, all day, and many continue to plow all night long too. They have to be superbly engineered to live in the outdoor environment of “dust, dirt, heat and cold” while fighting the visual impact of sunlight on their performance during the day. Unlike your Vizio TV, which operates once a day for an hour during back-to-back reruns of Gilligan’s Island, the LED sign can be on 24 hours per day, 7 days per week, 365 days per year.  As these LED sign workhorses  plow their “electronic field”, they have to plow pretty, to deliver superb content, brilliantly illuminated  in a bid to satisfy the discriminating business owner.

My suggestion to Sign Companies selling LED displays is to learn the differences in brands and learn the technology. Don’t let your customer be deluded into thinking that the cheapest LED sign is the best investment. That is seldom true in life due to the TANSTAAFL rule or:

“There is nothing in the world that some man cannot make a little worse and sell a little cheaper, and he who considers price only is that man’s lawful prey.”

I       I like John Ruskin's quote. 

       - Mike Prongue

      The usual disclaimer: all posts, reflections, writing, and other mutterings of opinion are mine, and do not reflect the opinions or beliefs of Vantage LED, unless I specifically state. I provide "food for thought", one opinion amongst 300,000,000 in the USA. What is YOUR opinion? Email me at michael@vantageled.com and tell me what you think.