Digital Signage, Need to Know: Importing LED Signs From China, Re-visited

China sourcing is alive and well, and when properly designed, controlled and managed, products made in China can be very impressive. But,  any serious American company utilizing China as their manufacturing source will have an on-site quality engineer, or preferably an engineering and production support team because with China “you get what you inspect, not what you expect”.

Apple does not phone in a sales order to its Chinese factory for 1,000,000 new iPhones, whatever the next generation, then sit around and drink wine and play ping pong until the boat arrives. 

Let’s face it, for today, China still has a “cost of labor” advantage. But, it’s rising fast, and sometimes when you factor in shipping, communication costs, and hassle, many companies are starting to practice “on-shoring”- bringing production back to the US.  

Some companies utilize Chinese production facilities and actually “rent” time for their own proprietary production run. They may have discovered a well-engineered and manufacture sub-component and then applied strategic modifications to improve its performance. It’s not the typical “off the shelf” standard component but it may have started off as one. There are many ways for the “China Connection” to be successfully exploited and maximized.

So, it does not matter if you are a major US LED sign manufacturer, Apple, Boeing, GM or thousands of others, somehow China is in your operation’s life- for better or for worse!

My concern centers on the LED sign product designed and engineered in China, built in China, Inspected and certified in China, and shipped from China without American talent involved in the process at all. Just like when ordering from the “Mail Order Bride” catalogs of the 1800’s, what you get may not be what you expected. And it’s probably harder to ship your double-sided 4x8’ LED screen back to Shenzhen than putting that person on the stagecoach and sending her back to Chicago.

My worry falls into 5 categories and while I will not identify Chinese manufacturers, these are personal experiences and first-hand accounts from industry professionals.

NRTL certification (Nationally Recognized Testing Laboratory certification- sometimes generically called UL certification), design issues, hardware quality, control software usability, and communication are the 5 Horsemen that ride roughshod  across the backs of LED sign importers. 

So let’s start:

NRTL Certification: It’s been a big deal in the LED Sign Industry and in the last 5 years more and more Chinese Manufacturers are paying attention and becoming ETL, MET or whatever “testing lab” certified. That is generally a good thing. No one wants unsafe or poorly constructed product on the streets, it‘s foolish and dangerous to pretend that certification is unimportant.  

The claim that Chinese product shipped, does not match the specifications of the product submitted for NRTL certification was alleged by 3 separate contacts, unrelated to each other.  In other words, it was alleged that they send the Lexus to the testing lab and ship the Yugo to the US.  Simply inspect (for example) the quality of the electrical wiring insulation and the way electrical supply lines are secured. If it looks like a duck and walks like a duck, think it over.

Since most of the world does not require NRTL certification, some wonder if the Chinese effort to provide NRTL certification is to merely placate the US market rather than to improve the product.

Design Issues: Oh where to start? Let’s be simple- for years one US distributor of Chinese products had a high failure rate of the LED signs they sold- real high. Water intrusion, cabinet hinge issues, locking issues, odd mounting holes in the cabinets that had to be plugged up were just a few concerns. 

Then, during one ISA Trade Show a Chinese Marketing Director revealed the truth “In China, most LED signs are mounted within a water-resistant structure or shroud that protects them from the elements. In the US, many small LED signs are simply put on a pole without any surrounding protection- not designed for this.”

This is just one example that importers (and customers) face when assuming that an LED sign is “an LED sign”. They are not all alike, universally.

Hardware Quality:  If I had a dime for every time I found a re-manufactured LED module shipped on a new LED display… well, I’d have a big stack of dimes. Even when confronted with this assertion over and over the manufacturer claimed an “accident”. The truth is that when you push too hard for a deeply discounted price, unique ways are found to meet that demand! 

Power supplies, wiring, cabinet construction, controllers, electrical sockets, and more can fail on any manufacturer’s product. But if you believe that a well-made US LED display is not significantly more reliable than a Chinese designed, manufactured and shipped LED sign then there is some wet land in Florida you might be interested in. 

Sure, some Chinese sub-components are well designed and used on US produced LED displays. I have no argument here. But when that reasonably good product becomes part of an LED sign totally originated in China, the overall reliability is a lot less. 

It’s your hair, pull it out if you want to!

Control Software Usability:  I like Science Fiction. How many times in a movie have I seen the control panel of some captured alien spaceship? A well-meaning scientist accidently activates the control panel and suddenly it’s all aglow with strange shapes and symbols that meant something to some being from some world, but is gibberish to humans. 

Well, for me, trying to use Chinese control software is exactly the same experience. It is designed for an engineer or someone with a lot of patience and time. I am neither of those.

Communication: What do you expect? As Americans sometimes communication is difficult within our own borders- different accents, different manners, different customs, and different time zones.There are tremendous communication issues involved in a trade relationship with China- 8,000 miles, 10 hours difference on time zones (or more), language, meaning of words, and the frustrating time element required to resolve anything. And, oh... find a decision maker, I challenge you!

If you have a problem on Monday, it can literally take until Friday to get an answer that has been misunderstood and must be asked again. What you think you are saying, is not what they may be hearing. If you are impatient, check with your doctor for a prescription of tranquilizers because you will need them.

To the Chinese Manufacturer’s credit, they usually appoint a representative that is well-versed in English. That does not solve your problem. It merely gives you a shoulder to cry on and someone to share in your misery.

It’s a complex world. Just ask Boeing. They access 500 suppliers, many international, to obtain 3,000,000 parts to build their 777 Dreamliner Jet Airliner. And you thought you had problems!

Boeing had to make a lot of choices to assemble their supplier list. If every supplier is operating at 100% efficiency and without incident, it is still a monumental task to integrate the vast universe of variables together to create the end product- a safe, well engineered, state-of-the art machine.

LED signs do not, of course, require 3,000,000 parts, but smart choices still have to be made and all the facts have to be known when choosing a supplier. Quality, technology, reputation, and communication are the time-tested factors of success. 

Choose wisely, choose USA.

These comments are my personal perspective and do not reflect the opinion of Vantage LED, Inc. or SignVine, Inc. or any other person or organization. If you have constructive feedback please email me at michael@signvine.org.  - Mike Prongue

 

Digital Signage Sales 101: Knowledge is power - what makes a good Digital Signage Solution.

-Deacon Wardlow

Knowledge is powerful, not solely in the acquisition of information, but rather how and when it's used. A big problem in our industry is the lack of education available to the public. Most Digital Signage integrators and specialists acquired their information through trial/error, experience, and bits and pieces gathered on the long road to implementing solutions for their clients.

There is a change coming in the industry. I've noticed more and more vendors, manufacturers, and resellers are starting to realize the power and importance of educating the client base. In this case, there is no "too little too late." The more people who bring information and education as opposed to advertorials and edusales, the better. An educating buyer will see past the glitz and glamor and ask to see how the system really works as opposed to flashy pics and false promises. 

I advise people to dig deeper when looking at solution and offers. Find out what's really being put on the table and what's being left out of view. Here are a few things to ask for with any system you're reviewing:

Scalability

How scalable is the solution? When the system is in place and a client opts to grow that system to multiple displays and (more importantly) multiple sites, can they manage everything from a single interface? Can new systems and sites be easily added to the software/cloud solution?

Ease-of-Use

When running the system, how much instruction is required to use the system? Is a higher level of expertise and experience required or can a new user get up and running with minimal training (an hour or less)? Does the system pass the 5min rule - from initial login, can a person create new content, schedule the content, and send the schedule to the displays within 5 minutes and minimal instruction/walkthrough? How intuitive is the system? 

Reliability

Based on experience and systems in place, what is the shortest and longest constant use/runtime of a system? How long have they had systems in place and what kind of "stress testing" has been done to ensure a system can operate under various conditions?

Limitations

Every solution has a place. Few, if any, systems can solve all the clients' needs. Some systems require touch/interactive capability while other are primarily content distribution (limited scheduling and other features). Work with vendors to learn the most you can about the system features and what it can and can't do. If a vendor tells you their system can "do everything" be wary. Better a specialized solution than a "jack of all trades." A jack of all trades can do a lot of things to a small degree, whereas a more specialized solution has stronger features and options available. 

The deeper you dig, the more you reveal and the better you and your clients can understand the solutions proposed. Don't take any one person or company's word on something - to offer solutions, you have to be able to figure out what the need is. The knowledge acquired now goes into the "toolbelt" and the more tools available, the easier and faster a need can be met, a problem solved.

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. Direct emails can be sent to deacon@spectacularmedia.com for queries and/or assistance.

Digital Signage, Need to Know: Innovation and Progress, or Complacency and Stagnation in LED Sign Technology

- Scott Hofheins

With the highly anticipated Apple Live event on Tuesday still causing excitement and buzz across the country, it reminds us that innovation continues to be a key component for a successful product. While there are some in the LED sign industry who believe things are best left the way they are, history has proven that true progress in any industry relies heavily innovation and organizations not afraid to take risks.

It is well understood that the sign industry is different than the consumer electronics industry. Manufacturing outdoor electronics that need to operate consistently for 5-10 years means that innovative development takes more time. However, true innovation is still extremely important and necessary for the health of the industry and the end user experience as a whole.

Options

The options now available for outdoor digital signage has, thankfully, progressed and evolved since the days of flip discs, incandescent marquees and simple LED marquees. While there is still a very secure place for single color text only message centers, I believe I speak for many by expressing my gratitude that full color technology and higher resolutions were developed. Content is more dynamic, and pleasant to read. Sign operators can be more creative and deliver their message more effectively to their targeted viewers.

This evolution did not come from an attitude of complacency; it came from people taking the risk of developing new technology to answer the market’s demand for a better and affordable product. Some failed, some succeeded, and the industry is better off because of their efforts. Outdoor digital signage is still young. We will continue to see more innovation, more features, a better experience and a better product for years to come.
Interaction

The way we interact with our displays has also evolved for the better. We are beginning to see more progress and a significant evolution toward better software, and a better end user experience. You would be hard pressed to find any sign owner who would choose outdated software designed overseas, over a quality domestic provider when truly given the opportunity. And this is one of the challenges with our industry. Too many end users do not get that opportunity. They are accepting sub-par software, or a sub par product because it’s simply what they got with the sign.

This is changing, and will continue to improve as our society gets closer and closer through improved communication and education. We are a world getting larger, while our social circle get’s tighter, giving us better tools and access to important information about any industry, business, manufacturer or organization.

Choice

End users in our industry now realize that they have a choice, they can be an educated Digital Signage consumer. They understand the difference between innovative products that offer an array of useful features and options, versus products that offer less simply because they can’t do any better. 

Innovation is hard, and is not without it’s challenges. Even hugely successful organizations like Google have their fair share of flops and failures. Remember Google Lively? No? Exactly. But that is the beauty of true innovators, is they don’t give up. They fix, re-invent, take a different approach, or start from scratch. Change isn’t always popular, but is critical to the progress of technology, and I would argue to the human experience in general.

Without innovation we would still be waiting days, weeks or months for important letters, seeing our recorded history in black and white, and agreeing that the idea of a individuals owning and using personal computers is ludicrous. While there are products and software out that may be gimmicky, over hyped, or bad copies of the original, you have the tools now to weed through it all and get what you want and deserve.

Stay smart, and deal with true innovators who offer products designed, produced, and supported in the US.  

-TSH

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: Are LED Billboards Safe?

New technology is not instantly accepted and used, regardless of its value, effectiveness, cost, or efficiency. There are many reasons why it takes time for users to get "on board" with even the coolest innovation. LED technology adapted for use in LED sign, including billboards is one such innovation.

There is a statistical science to how new technology is accepted by society. This is called the "Technology Adoption Lifecycle" or diffusion model, and a simple summary from Wikipedia can be read here Summary.

What is says is that there are 5 categories of users of new technology within the standard bell curve with time on the "X" axis of the graph:

Category               Percentage
-------------------    -------------
Innovators               2.5%
Early Adopters         13.5%
Early Majority          34.0% 
Late Majority          34.0%
Laggard                 16.0%

Over time, the Innovators comprise 2.5% percent of the population- those were the people who perhaps rushed out to buy Apple 1s in June of 1977. Or maybe, in the LED sign industry, the Innovators were those customers who purchased something like a DCI message board that used relays and light bulbs insanely complex programming- before the introduction of today's RGB comparative "miracle".

The other user categories gradually catch on, and the product "takes off" and becomes accepted.

Where are we with the LED sign billboards? I don't think anyone can say for sure, but my guess is we are somewhere in the Early Majority. By the time the Innovators, Early Adopters, and the Early Majority have accepted LED sign billboards about half the market of people who will eventually buy LED sign billboard will have accepted them and will own one.

What's stopping the rest of the customers? Perhaps cost, waiting for even better technology, understanding the true cost versus financial return of the product and I think social acceptance, including the perceived safety of LED sign billboards by communities and "laggards", as referenced above, must be considered.

A recent study by the US Department of Transportation, Federal Highway Administration entitled "Driver Visual Behavior In The Presence of Commercial Electronic Variable Message Signs" (Report), concluded that drivers did, in fact, take an instant longer to look at the LED sign messages than a static-message billboard. But the distraction time was well under two-second safety threshold established. The LED-message glance took  0.379 seconds, while glances at static billboards took 0.335 seconds. This was not statistically significant.
  
Digital billboards are referred to as Commercial Electronic Variable Message Signs (CEVMS) within the study.

The study summarizes, “The results did not provide evidence indicating that CEVMS, as deployed and tested in the two selected cities, were associated with unacceptably long glances away from the road. When dwell times longer than the currently accepted threshold of 2,000 ms [milliseconds] occurred, the road ahead was still in the driver’s field of view. This was the case for both CEVMS and standard billboards.” 

Now that the safety objection has been surmounted we can move on to other objections to the roll-out of digital billboards. The digital billboards I see look a lot like static billboard with extended duration messages and intentionally understated graphics.

If you don't like billboards in general, that may be. But there must be a balance between commerce and a pristine right-of-way, it's not just a case of "all or nothing"

This digital billboard phenomenon is not a nefarious invasion. It's merely an easier and more profitable way to stage outdoor media. But, as they say, "You can overcome objections, but not excuses!"  What is the next excuse, uhh, objection?

These comments are my personal perspective and do not reflect the opinion of Vantage LED, Inc. or SignVine, Inc. or any other person or organization. If you have constructive feedback please email me at michael@signvine.org.  - Mike Prongue

Digital Signage 101 - Content: Show, don't tell... the importance of graphic content with DS

-Deacon Wardlow

Somewhere along the line, someone didn't take into consideration the unique aspect of a digital medium and (more importantly) how it's supposed to be used. A digital menu board isn't just the menu on an LCD or other HD screen with some animations. A digital menu board is a visual diorama of what's available, the cost, and options. The best example I've seen of this is in Japan with the plastic food.

A visit to Japan will net you amazing and eye-opening experiences and one of them is the plastic food. Items displayed at the restaurant entrance which are eerily exactly WYSIWYG (What You See Is What You Get), down to the sheen on the soup. Amazing, simple, to-the-point, and just what I want as food is such a visual thing to begin with. Why is this not catching on with our DS systems?

LED Sign systems tend to be more in-line and "get it" than interior (or some exterior) HD displays (meaning LCD, OLED, other...). Partially this is because the average viewing time is somewhere between 3-6 seconds as a driver goes by an LED Sign. Short viewing times mean the message has to be brief, impactful, and memorable. Regardless of the location or image quality, all DS should be like this. Brief - impactful - memorable.

If someone wants to know more about a given food item, they'll ask. Entice them with images and price and let the DS display be as impactful as possible. Whether it's a chicken filet sandwhich or information about new dental services - a DS systems needs to be designed in such a way as to grab the viewers' attention and be successful at whatever the DS objective is.

Want to reduce perceived wait times? - Quick fun and quirky trivia (with pics if possible).
Digital Menu Board? - Show food and prices with special items animated (especially if the "special item" is something that needs to be sold out ASAP)
C-Store/gas station? - Highlight lunch specials, the new milkshake machine, free 72 hour refills on soda w/receipt and special cup, etc.
Airport - Show a map highlighting where a person is and which flights are going out at which gates - maybe even a path to the gate with special mention of food/drink/stores along the way...

As Scott pointed out in last week's article, we say too much and end up losing the message. With DS the important emphasis should be on SHOWING, not tellling the important details of the message you're looking to convey. By simplifying the message and cleaning up the clutter, you'll achieve your DS goals faster and better than before.

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, Need to Know: Too Much, Not Enough? How To Create an Efficient and Effective Impression With Your LED Sign.

-Scott Hofheins

Your outdoor or indoor digital sign has something to say, and someone to say it too. How much information is too much? How much is too little? These are factors that any operator has to balance appropriately to generate effective content on a display. I’ll be focusing on outdoor digital signage for this post, but much of this can apply to indoor applications as well.

In order effectively use your display to it’s fullest, you must first define its purposes and prioritize them accordingly. What type of display is this going to be, and why would your viewers be interested in it?

Attention Getter
Do you want your sign just generate “flash” and attention to your existing location or static signage? This means that the actual text of the message isn't’ as important as the movement, colors and general excitement of the content. Some would argue that ALL outdoor LED signs fill this purpose, but I would caution that in most cases this is an auxiliary effect of your display, not the main purpose.

However, in certain situations this may your main goal, and you will need to focus your content on imagery, colors, and moving designs and shapes. In these cases, the “call to action” is the actual image and colors. The more colorful, hip, and dynamic the animations, the more visible your display will be, increasing the chance for the viewers to take a look.

Information Provider
Does your sign provide information to your viewers, like stocks, emergency information, events, dates and times, or statistics? Some examples would be factories, municipal buildings, traffic displays, scrolling stock tickers, and other special purpose applications.

While it is still important to make the information colorful and dynamic, the focus should be on the information itself. Content for these types of displays should still have movement and limited effects for attention, but the clarity and readability of the text should be the number one priority. That may mean using simple backgrounds, and easy to read, bold, and single color text.  

On-Premise Advertising
Most LED signs will fall into this category. Your sign is drawing attention and advertising for your business or organization “On-Premise” (or on the property) and is directing the viewers to stop in, call, or visit your website.

Content for these displays should be colorful, dynamic and attention getting on all levels, while still maintaining the clarity of the message. Effects should be eye catching, but end quickly to allow more time to communication a clear and concise message with the text. The text should still be colorful, but readable, and contain a call to action.

Scheduling the content for these displays needs to be done carefully. You must keep your messages focused, as your viewers have a limited time to view your display. They may only get 1 or 2 messages, or in some cases 3-4. Overcrowding a display with too many messages for separate products or services can sometimes cause viewers to be less responsive to the sign. This is not to say that content shouldn’t be updated, but that it should be focused. Keep the content fresh, and advertise your products and services in multiple ways, but control the quantity of each product or service on the sign.

Off-Premise Advertising
Digital billboards make up the majority of this area, but there are other avenues for this type of sign application like malls, multi tenant offices and shopping centers. These displays advertise products, companies, brands, and services that are not necessarily on the same property as the sign. They direct viewers to visit websites, call telephone numbers, or visit locations “Off-Premise” from the actual display.

Many of the same principles apply as an On-Premise sign. Content should be colorful, dynamic and attention getting. In many cases, these displays are much larger than On-Premise signs, so the content can use more fonts with more options for stylistic designs. However, the message still must be clear and readable. Most of the time, viewers for these are traveling on a busy street, and still have limited time to view the content.

Over-scheduling Off-Premise displays means less views (impressions) per advertisement, reducing the effectiveness for each ad. This in turn can affect the revenue you can generate with each ad, so most operators will limit the display to a certain number of slots per sign to control this factor.

How Much Time?

To maximize the effect your content has on the viewers, you must be very aware of how much time they have to look at your display. If you don’t have a good grasp on this, then take some time to drive by your sign and verify. How many seconds of real viewing time does the average driver, or viewer have?

If your sign is lucky enough to be in a location where viewers are captive, like standing in line at a ticket booth, or heavy traffic and/or traffic lights, then you don’t have to worry as much about overloading your sign. While your marketing should still remain focused, you can have more products or services listed for the viewers to see and react to.

Many signs are located on busy streets or freeways. You sign can be just as effective, but you must manage the quantity of your messages, and keep a targeted approach. These drivers may only have a couple of seconds to see your sign, and you need to make that count. The text of your messages should very simple and easy to remember. Effects and movement should be quick, and make way for the text immediately. Keeping your content fresh is even more important, to continue to grab the attention of the viewers.

Other locations can be a mixture of both. Some parts of day might be fast, and viewers don’t have much time to view the display. Other times can be slower, with increased traffic and slower traveling speed. Take this into account with your scheduling and content and adjust accordingly throughout the day. Good sign software provided from quality manufacturers will allow you to do this quickly and easily.

Call to Action and Relevancy

Make sure your content really counts. While general information is good, information that tells you to do something is much better. When creating content, always be thinking of what you want the customer to do with that information. Should they turn in right now and visit you? Should they call you for a quote? Like you on facebook for a discount? These are some examples of a call to action, directing the viewer to interact with you.

In addition to this, make sure your content itself has a purpose. Time, Date and Temperature messages don’t demand attention like they used to. While there are some locations and situations where these may be important, it’s usually best to spend the time advertising  your organization or products.

Put yourself in your viewers shoes, and make sure you're not overloading them with information. Organize your sign schedule, and design your content according to their needs. Every location is a bit different, but the key is to find out exactly what type of viewer is seeing your sign, when they are seeing it, and how long they have to see it. Take the time to do this, and you will find the balance of information, and get the most out of your digital sign.

-TSH

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: Cheap is, as Cheap does.

One evening this past week, as I prepared to click over to Netflix to watch a movie, the old sitcom “Leave it to Beaver” was on.  Wally, played by Tony Dow, the older of the two kids who star in this American classic, was lamenting the fact that his sarcastic and hard-headed friend Eddie Haskell, played by Ken Osmond, could never change his behavior and he said something like this:

“You could slug him a thousand times and he’d never get the message- Eddie is Eddie!”

Well, that is exactly the attitude of some sign companies who still sell LED Signs on price alone, cheap price alone!

We’ve slugged them and slugged them with information. Heck, they “slug” themselves each day with unhappy customers, repeat service calls, and technical issues: LED signs that dim after a few months for example, but some never seem to “get the message”.

Many LED sign companies have gotten the message, but sometimes when their customer  screams “Price!” they run back to those importers who advertise their product on “price” alone- those importers who steadfastly deny all they know, hear and see to be true when they advertise that “All LED signs are alike!”

Really, there is never a reason to sell on price. I know, I know… you are thinking “that one guy across town said he’d only spend $8,000, so I had to import a ‘burner’ to make him happy!”

Let’s try to shift your LED sign paradigm a bit! Shall we?

When you buy a watermelon that is an expendable item, right? When you buy an X-Box or a TV set, for example, those are items that have value because they entertain you. These items are commodity items, or consumer items. Other items such as a refrigerator or a kitchen range have value because they help you live comfortably as we can store and process our foods effectively.  They have utility value.

Sometimes a person can save money by “going cheap” on commodities or consumer items. A cheap range may be all that is required if a person only cooks once a week. Or if a refrigerator is for occasional use in a vacation home, then you can argue that a basic model may suffice because it’s not relied upon daily. 

An LED sign is not a commodity no matter how determined the ad in the magazine declares that it is!

An LED display is called upon frequently to run 24 hours a day, 7 days a week. It is the “face” of the business that is projected to new customers and the community. It is the “pitchman” always promoting the business. 

Here is how you show the customer that they can afford a quality LED sign having it paid for from the increased sales the new LED sign provides.

You’ve heard it before but here again is the process:

• Determine what life-span you wish to assign your LED sign installation. For the sake of argument, be conservative and say “5 years.”

• What is a realistic interest rate for commercial financing,"8 percent”?

• Assume a percentage increase in the customer’s business from the new LED sign,“15 percent”.

• Assume a gross margin percentage for the business, “25 percent”.

• What is the current sales level of the business, “$600,000”?

Do the math:

The finance cost of $20,000 at 8% interest for 5 years is about $405 per month.

If sales increase at 15% from the current $600,000, at 25% margin, how much new income is there available to pay for the LED sign?  ($600,000*.15*.25) = $22,500 per year or $1875 per month.

So the sales increase from the LED sign should cover the cost of the financing and add an additional $17,640 to the business’ annual income ($22,500 – ($405*12 months)). It's a "free" sign!

Why go cheap? Why suffer with poor, cheap software? Why project the face of your business or non profit concern with an LED sign that operates intermittently?

Customers have a belief that “X” dollars is all they can spend or that's all the project's worth. It is your job to dispel that myth stuck in their head. Slug 'em with some information, or an example to keep them from buying an LED sign they'll regret for years.

Other considerations when selling LED signs:

What do you do when you have a non-profit? How do you make the return on investment point?

Each new member of the church’s congregation, or each new member of the Elk’s Club (for example) adds to the success of that non profit. Ask the question:

“How many new faces will the LED sign attract?” Or, if that question is too precarious, ask how much money the non profit spends on bill board or TV advertisement that will not longer be required.

A local church had suspended it’s billboard ads, and then suddenly a new LED sign popped up at the church! Someone was on their toes at that LED sign company!

Another suggestion is to challenge the customer and have them drive around the town and look at the LED signs that don't work! Who makes them? No-name Nellies... imports. Show them the LED sign carcasses that litter the sign poles in your town.

On premise advertising works. That is an undeniable fact. 

It works better for all parties concerned when the product is a high-quality,  and domestically engineered and manufactured. Say it… “USA, USA, USA!”

All I've needed to know in life was learned from Wally Cleaver, "Golly, that sure is neat!"

These comments are my personal perspective and do not reflect the opinion of Vantage LED, Inc. or SignVine, Inc. or any other person or organization. If you have constructive feedback please email me at michael@signvine.org.  - Mike Prongue