Small Business Advertising ROI
On premise signage is both effective and economical; it is a powerful marketing tool for making the most of advertising dollars to reach potential customers. Another way signs bring value to a business is by providing a good return on investment. Our first case study is Frenchy’s Bistro. It was a small store front restaurant on a busy street that looked like this; can you guess where it is? Well neither could their customers, they would literally drive right by. If you wanted friends to meet you for lunch at Frenchy’s, you would have to tell them the address and give them directions, but you knew that wouldn’t be enough. So the last thing you’d say is, it’s near the paint store.
Anyway, back to Frenchy’s, if you can find it, let me give you some help. Unfortunately, like many small business owners, Frenchy’s Bistro assumed their customers already knew where they were, and therefore felt they did not need a sign. In 1997, they had a yearly growth income just above $250,000, but they were only marginally profitable, worse, income had stabilized. A friend and patron convinced them to invest in a V shaped Signtronix sign for $6000.00, in comparison, the new sign, while small, was far more visible than the old one.
In the first year after the new sign was installed, Frenchy’s sales increased by 16%, in the second year with the new sign, sales jumped an additional 32%. Now mind you, Frenchy’s did nothing else to the business to attribute this increase, they didn’t do any extra advertising, they didn’t change the menu or add any specials, the only thing that changed was the Signtronix sign. In 2 years a sign costing $6000.00, led to almost $200,000 in additional revenue. Incidentally, while Frenchy’s was experiencing this new found success, one of its neighbors failed, can you guess which business it was? That’s right, the one next door, and the one with a sign that was barely visible.
So Frenchy’s expanded, but now that they understood the value of signage, and had experienced the impact it had on their bottom line, they added a larger Signtronix V sign and refinished the storefront to enhance their street presence even more. Following the expansion, Frenchy’s gross income increased 37%, and after a full year with the new larger V sign, Frenchy’s income had grown an additional 34%, for a total gross above $823,000. In 4 short years, they increased revenue 322%. They started with 25 feet of store frontage, virtually no sign and sales plateauing at $250,000.
Well this was obviously good for business, and added bonus was that it also benefited the city. Frenchy’s took an old eye sore of a building and transformed it into something cohesive and attractive, improving the community esthetic, oh, and there was all that additional tax revenue of course. It’s difficult to quantify the exact value of signage, but when a sign can increase revenue while cutting costs, it’s worth every penny and more.
Those are just a few examples of how the right use of signage can benefit business. The value of signage lies in its marketing ability. When a sign is viewed not just as a marker, but as a powerful marketing tool, its hidden potential is tapped, and its full value is realized. Not just for the business that owns it, but for the customers it communicates with and to the city where it’s located. Thank you
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Tags: advertising, roi, signtronix, Small Business