Sign for Dollar Store and Retailers
Saturday March 13, 2010
Signs for Dollar Store and Retailer
Marketing Series
SIGNS: Showcasing Your Business on the Street
The Importance of Signage for your Business
By R. James Claus, PhD
and Susan L. Claus
Businesses exist in a highly competitive environment. To
succeed, a business must be able to communicate with customers
quickly and effectively regarding the products or services it
offers. For most businesses, the most cost-effective and
efficient form of advertising to potential customers is
on-premise signage.
Signage is a business's basic link to customers. This is true
whether the sign's purpose is to promote impulse "stop and shop,"
to create awareness for the product or service for future
reference, to reinforce other forms of media advertising, to
influence purchasing decisions once the customer has stopped, or
to physically mark the building site and location to aid motorist
safety.
Caption 1: Modern signs have evolved to meet every
place-based commercial communication need. The most
advanced form of signage is represented by the expansion of
the old "false front" of early businesses to national
franchise and chain identification signage systems, backed
by major media advertising. Learning to use your sign
skillfully will maximize your return on advertising
dollars.
Functions of On-Premise Signage
On-premise signs serve six primary functions:
1. To develop brand equity by emphasizing words (Dollar Store), graphics or
symbols that are associated with the products or services offered
by a business. Developing brand equity for a site includes the
presentation of signage and architecture to create a unique
awareness of the products or services offered at that site.
Brand equity for a particular business is similar to the goodwill
of an enterprise.
2. To aid in recall and reinforcement of other media advertising
efforts. In addition to the business's name " Dollar Store ", if the business has
a trademark or logo, the symbol should also appear on the sign
and as part of any other choice of advertising. Often, when a
site is successfully "branded" in the local trade area, the need
for other media advertising is significantly reduced.
3. To prompt a purchase, especially "impulse" purchases. As
consumers drive by, they often see a sign, stop at that business,
and buy on impulse. On-premise signs increase your business.
They offer a method for point-of-sale advertising.
4. To change a purchasing decision or choice once the customer is
on the premises or in the building. Temporary signage, whether
exterior or interior, is very useful in this context,
particularly to call attention to "specials."
5. To promote traffic safety by notifying motorists where they
are in relation to where they want to go, and assisting their
entry to the premises, should they decide to stop. However, a
sign cannot successfully perform this function unless it can be
detected and read by a motorist in sufficient time to
appropriately react in traffic.
6. To complement community "aesthetic" standards. Today's sign
design and production technology makes it possible for on-premise
signage to reflect the character or architecture of its
surroundings, without sacrificing any of its other primary
communication functions. Well-designed signs certainly can be
employed as land use and business planning tools to create a sense
of place in central business districts, neighborhood commercial
blocks or corners, urban commercial corridors, entertainment
centers, and tourist destinations.
Caption 2: Your sign performs many functions, from letting
people know who you are and what you offer, to assisting
safe driving decisions and way finding.
Caption 3: The right sign can brand your site, even if you
are not part of a national franchise or chain. Your sign
should display a logo or trademark that identifies your
business and develops memory of your location in the minds
of potential customers.
Caption 4: Most major media advertising is expensive.
Your sign is an economical way to display and reinforce
your message. Always use your logo or trademark in all
television and print advertising efforts, including
business cards and letterheads.
Americans live in a sophisticated, highly mobile, consumer-based
society where billions of dollars are exchanged annually for
goods, products, and services. The U.S. economy is no longer
dominated by industrial or manufacturing commerce, but instead by
retailing and service business activities. This change has
elevated the role of commercial signage to one of paramount
importance to both the individual business and the community at
large. One example of increased awareness of this importance is
reflected in the courts, both state and federal, where commercial
signage has gained recognition as a form of protected speech
under the First Amendment. (For the seminal case, see Virginia
State Bd. Of Pharmacy v. Virginia Citizens Consumer Council, Inc.
425 U.S. 748 (1976))
Contributing to the growing recognition that on-premise signage
is a valuable economic partner are two important trends: (1) the
increasing reliance of consumers on their automobiles, and (2)
the increasing number of people who are moving to unfamiliar
geographic areas for new job opportunities, resulting in large
shifts in population. These influences have fostered substantial
changes in customer behavior, generating identification needs
that businesses must recognize and address if they are to remain
competitive. Nothing can meet these requirements as quickly,
safely, and effectively as an on-premise sign that is
appropriately designed and placed. In fact, the on-premise sign
may well be the critical factor in a business's success or
failure.
Types of On-Premise Signs
Signage design and construction is site specific and an essential
component of any successful business strategy. Knowledge of the
various types of signs available and the numerous functions they
perform can provide dramatic bottom-line results to a business if
properly integrated.
Signs are classified as either ground mounted or building
mounted. Both types are valid and necessary forms of signage
which, when applied to a business's unique needs and location,
result in proper advertising of the business.
Ground-mounted, freestanding signs vary in size and height, as
well as construction method. Freestanding signs are often the
most effective in communicating your message to the public.
They're typically placed close to the roadway with the sign face
perpendicular to the road. When they're built to a proper height
and size, they are the most readable of all signs.
Caption 5: A sign may be observed for later recall or it
may prompt an immediate reaction and unplanned stop. The
"impulse" trade is often the difference between
profitability and business failure. Dollar Store – Dollar Outlet
Caption 6: In a busy society with mobile consumers, the
sign is more than a welcoming "handshake" - it is a safe
way finding signal. The right on-premise sign can turn even
a marginally visible site into a safe beacon for
approaching motorists.
Building-mounted signs are further classified based upon where
they are installed on the building, such as wall or fascia,
canopy, marquee, parapet or roof. The appropriate size and
height of building-mounted signs varies greatly based on the
distance from the building to the street, viewing angle, viewing
obstructions, and building site.
Additionally, it is possible to design a building to support and
enhance the signage. This sign centric design principle results
in a reinforcing synergy between the building architecture and
the business's signage and is frequently used by regional and
national retailers. A number of national retailers have taken
this concept further, creating a standard signature building where
the building's appearance further reinforces the advertising
message and brand identity. Special site lighting and
landscaping are often added to further the unique appearance of
the business.
The market-wise retailer uses all of these methods to create a
unique brand identity for the business. In today's ever-evolving
business environment, whenever possible or feasible, the modern
businessperson cannot simply consider traditional forms of
on-premise signs, but must take into account all forms of signage
and the way a site's overall visibility functions to inform,
direct, identify and advertise the business.
Caption 7: Your sign can both customize your site and
reflect the visual character or environment of its
surroundings. Today's sign technology makes it possible
for signs to meet nearly every aesthetic standard and
effectively perform their vital communication function
simultaneously.
Caption 8: Signs represent the most basic form of speech.
Commercial signs are a necessary component of informed
consumer decisions. Your right to inform the public cannot
be compromised, absent a substantial state interest that
cannot be advanced except through censorship of your
message.
Caption 9: Today's signs should serve the needs of society
in a way that meets consumer information needs effectively,
conveniently and safely.
The Role of Signage in a Dynamic Retail Environment
In the U.S. retail economy, on-premise business signage
symbolizes the most universal of all advertising options,
surpassing television, radio, print, and direct mail. Today's
signage is expansive and innovative. It can effectively and
attractively perform a vital communication function alone or in
partnership with other advertising media.
Each business must develop a comprehensive business strategy,
including an effective signage program. The signage needs of a
local retailer are very different from those of a national
franchise. The local retailer usually cannot rely on or afford
expensive traditional media advertising to present and reinforce
their message. Their signage is the primary method available for
advertising and gaining customers, and may be the essential key
to success.
The cost of media advertising is calculated in terms of "cost per
thousand exposures." The on-premise sign is a permanent asset
which, unlike other media, is exclusive to the business it
advertises. Also unlike other advertising media, it is on the
job 24 hours a day, 365 days a year.
Because a sign's exposure time to the passing public is
continuous, evaluating its "cost-per-thousand exposures" is more
complicated than for other media, such as television or radio,
where exposure of the message is of limited duration.
Caption 10: Whether a sign is visible to the average
motorist depends upon the visual acuity of the motorist.
The sign must also be properly placed within the driver's
cone of vision, and be legible and conspicuous. Whenever
possible, it should be illuminated to enhance visibility at
night or during inclement weather.
Caption 11: The right sign is worth a thousand words.
For the on-premise sign, the cost-of-the-message calculation is
based on the original cost of the sign (design, production and
construction, and placement costs) plus maintenance expenses and
depreciation, as well as factors relating to trade area
demographics and traffic counts (or readership). Take a look at
how inexpensive an on-premise sign is compared to other forms of
advertising.
Figure 1 shows the formula for calculating the
cost-per-thousand exposures for an on-premise sign, using
an example that applies $33,000 as the cost of the sign.
As you can see, the monthly cost-per-thousand exposures of
the on-premise sign in this example is $0.22.
Now look at how that amount - literally a fraction of a dollar -
compares to the cost of other forms of advertising. The graphs
in Figure 2 compare the cost-per-thousand exposures of on-premise
signage with other advertising media over a four-week period,
with an equal amount (again, approximately $33,000) spent on each
medium.
From the above media cost evaluations, one can quickly note that
the on-premise sign provides exposure of its message to a large
pool of potential customers at a fraction of the cost of other
media. Hence, the lower your cost to gain top-of-mind customer
awareness, the higher your return on your advertising dollars.
FIGURE 1 Cost/1000 Exposures Formula for an On-Premise Sign
This example applies $33,000 as the cost of the sign:
Assumptions:
Initial Cost of Design, $33,000
Production and Installation: (for two faces)
Amortization Period: 7 years
Cost of Sign/Month: $393.00
Estimated traffic count (cars/day): 60,000
Formula:
Cost/1000 Vehicle Exposures Monthly Cost
divided by
Monthly Exposures
Calculation: 393.00
1.8 million
Cost/1000 Exposures = 0.22
FIGURE 2 Given the costs of other media - all of which are
"off-premise" - it's easy to see how effective and
inexpensive an on-premise sign is.
Gross Impressions (in Millions):
On-Premise: 2
Outdoor: 20
Radio: 6
TV: 3
Newspaper: 10
Cost Per Thousand Impressions:
On-Premise: $ 0.22
Outdoor: $ 1.90
Radio: $ 5.90
TV: $ 10.00
Newspaper: $ 3.60
Asset Management of the On-Premise Sign: Its Value in the
Marketplace.
On-premise business signs are an elemental component of
successful business strategies and asset management. They are as
important to a commercial zone's success as sidewalks,
streetlights, curbs, parking and streets. Signage should receive
the same careful attention to function as these other components.
It also requires attention to cleaning and maintenance.
Signage must communicate an attractive image for the business to
attract a clientele. In other words, it is just as important for
today's businessperson to convey the proper image to the passing
public as it is for the community to present an attractive retail
environment.
The goal is to attract the attention of potential customers and
convince a potential customer to stop. Signage is often the only
visible clue that a business exists. In this situation, site
planning and development must be "sign centric" (based around the
signage) to optimize the site's economic value. “ Dollar Store “
Street frontage offers a unique opportunity to interact with each
passerby. If well-design signs, visible to the street, do not
maximize this advantage, then potential patronage will be lost.
These lost sales may ultimately represent the difference between
the success and failure of a business.
For freeway-oriented businesses, as many as 50% of their
customers are non-locals, neither living nor working nearby.
There may be only one opportunity to capture their attention.
Without a properly sized sign installed at the necessary height
to be visible from the freeway, these businesses will be
essentially invisible and will struggle to survive.
The on-premise sign, when standing alone, should be considered
and treated as a full-function communication and design system.
In any commercial setting, the sign should be easily detectable
because it (1) is of sufficient size and height not to be masked
or obstructed by intervening traffic or other objects in the
visual field, (2) displays "content" (copy and/or graphics) that
is legible, and (3) stands out from its background. In other
words, it should be optimally visible, legible, and conspicuous.
On-premise signs are one of the most important ingredients of any
advertising program. Whenever possible, they should be
integrated into all media advertising campaigns. In addition,
building design and colors, product displays and dispensers,
landscaping, lighting, and layout may all be part of the
"signature" mix of an advertising program. When used correctly,
on-premise signage provides immediate marketing advantages.
Caption 12: Your on-premise signage provides both an
invitation to the potential customer to stop now and
assists consumer memory and recall for future use. It
gives you the competitive edge you may need to succeed.
The Mobile Consumer: A Case in Point
Without a properly designed and placed on-premise business sign,
a commercial site cannot function at its full economic potential.
Generally, appraisal of commercial real estate addresses three
location factors - visibility, accessibility and parking. When
assessing a sign's contributory value to its site, appraisers
concentrate on the so-called visibility factor. This factor has
two components: (1) the site's overall visibility, and (2) the
visibility of the sign in terms of how easily it can be seen,
understood and safely reacted to from the road.
The importance of signage to mobile consumers is underlined by
the fact that many are in a hurry. The example below sets out a
survey conducted by Burger King Corp. over several weeks. The
survey results were part of evidence submitted in a legal action
brought by Burger King, among others, against Agoura Hills,
California, to prevent the removal of its freeway-oriented,
high-rise on-premise sign, as required under a new sign code.
The subject Burger King sign was visible to the Ventura freeway;
the building was not.
Surveys were conducted at quick-service food (QSF), family, and
atmosphere restaurants. The participants were asked how they
first became aware of the restaurant. The results are tabulated
below in Table 1:
TABLE 1 QSF % Family % Atmosphere %
SAW THE SIGN 35 26 13
ALWAYS KNEW 29 27 19
WORD-OF-MOUTH 14 30 54
ADVERTISING 10 6 4
ALL OTHER 6 7 7
DON'T KNOW 6 4 3
TOTAL 100 100 100
The spontaneous nature of the QSF visit (in the above example,
35%) has critical implications for all business strategies,
particularly advertising in the form of on-premise signage that
is optimally visible to passing motorists. In the Agoura Hills
case, without the sign, business revenue losses would have
amounted to $3.2 million over the 15 years remaining on the
lease. Most of the loss would have occurred in the first two to
three years, and the store could not have stayed in business for
the full term of its lease. Burger King and its co-plaintiffs
won the lawsuit, and the city was permanently enjoined from
enforcing its high-rise pole sign ban against them. (See,
Denny's Inc. et al v. City of Agoura Hills, 56 Cal. App. 4th
1312, 66 Cal. Rptr 2d 382 (1997))
The Impulse Trade
As described previously, another primary function of on-premise
signs is to prompt consumers to stop and shop. This type of
consumer behavior is measured by the Institute of Transportation
Engineers (ITE) based on trip-generation rates.
While typical trip-generation rates are derived from counts taken
at the driveways of various land uses, such as a business, not al
trips generated at the driveway represent new trips made for the
express purpose of entering that particular site; instead some
are made by motorists who did not set out for the site, but who
enter it as an intermediate stop on the way to or from another
destination. This type of stop is referred to by the ITE as a
"pass-by trip;" for our purposes, it is defined as an "impulse
stop." “ Dollar Store “
The percentage of pass-by trips, or impulse stops, varies by land
use. Table 2 sets out ITE estimates regarding the percentage of
stops attributable to motorists for whom the site is not the
primary destination. It is clear from the Table that impulse
trade is very important to many businesses. And because the
stops are not planed, it is unlikely such stops would be made
without optimum communication to the street by the sample
businesses.
TABLE 2 Impulse-Stop Percentages
Business Land Use Impulse-Stop %
Shopping Center
-Larger than 400,000 sq. ft. 30%
-100,000-400,000 sq. ft. 25%
-Smaller than 100,000 sq. ft. 35%
Convenience market 40%
Discount Club/Warehouse Store 20%
Fast Food Restaurant 40%
Sit Down Restaurant 25%
Service Station 45%
Supermarket 20%
The Bottom Line
On-premise signage can be a business's single most important
advertising vehicle. Whether used to create brand equity, to
promote impulse buying, or to safely guide customers to your
door, on-premise signs can mean the difference between business
success or failure. In the modern market-place, the right
place-based advertising will effectively and economically permit
the local shopkeeper to successfully compete, even with the mass
merchandiser or large retailer.
Safe Passage (or Way finding)
Signs are critical to safe movement by the traveling public and
are the primary way finding device employed on U.S. streets, roads
and highways. Traffic risks and accidents occur in part because
people are not provided easy access to information necessary to
their purpose. Drivers look for, and expect to find, signs
telling them where to go and what is available once they get
there. A sign that is too small, inadequately placed, poorly
illuminated, inconspicuous, or in disrepair will be frustrating
to mobile consumers. Frustrated consumers often make unsafe
traffic maneuvers to get where they want to go. Furthermore, as
the present driving population ages, the visual acuity of the
average driver decreases, and the need for the signage to be more
conspicuous and legible will correspondingly increase.
Caption 12: Sign design and placement must concentrate on
the goal of providing optimally visible and legible
information to the passing motorist or pedestrian. Both
design and placement should assure that at the first read,
and within 2-3 seconds, the viewer is aware of what you
consider your most important message. If the targeted
viewer is a motorist, the advance viewing times should be
long enough to permit a safe response.
Interior Signage
The Americans with Disabilities Act (ADA) became effective on
January 1, 1992. This sweeping civil rights act forever changed
the way buildings and landscapes were conceived and designed. As
part of the process, signage was impacted in a similar fashion.
Interior signage has two major purposes. First, it serves as a
guidance or way finding system to move people through a building
safely. You must always consider how the legal requirements from
the Disabilities Act impact your signage, both exterior and
interior, to make sure you are in compliance.
Its other purpose is to provide point-of-purchase advertising.
National retail executives will tell you that effective
point-of-purchase ads can influence 85% of purchases in a store.
Also, major brand producers will pay substantial amounts to a
storeowner to acquire this space.
A more complete discussion of interior signage, as well as store
layout - another important ingredient in a successful advertising
and marketing mix - is beyond the scope of this advisory.
Outdoor Advertising in a Nutshell
The difference between on-premise business signage and outdoor
advertising (or off-premise signage) is that the former
communicates information concerning goods, products, or services
available in very close proximity to the sign while the latter
references goods, products, or services, and sometimes
activities, available somewhere else.
Although the focus of this publication is on-premise business
signage, a brief discussion of outdoor advertising is useful at
this point. Outdoor advertising is a big player in the major
media advertising mix of U.S. corporations, and advertising
measurements applicable to on-premise signage are derived from
those routinely used by outdoor advertisers. This is especially
true for "cost-per-thousand exposures" calculations.
Outdoor advertising is commonly referred to as "billboard"
advertising, although this is an inaccurate definition as many
varieties exist. For example, advertising that appears on public
buses, bus stop shelters, or benches is outdoor advertising. The
term "billboard" itself derives from the colonial American custom
of attaching a "bill" (or paper poster) containing a written or
pictorial message on a "board" and then displaying the device
about town or out on the road. Today's outdoor structure is
typically defined by size. The structures seen on major
interstates and highways generally are produced and owned by
large companies, and are standardized by size. The structures
seen on secondary roads generally are owned by smaller companies
or individual landowners and are not standardized by size.
Outdoor advertising structures dramatically expand street
communication for the retailer. They develop specific memory
about a business by offering convenient and useful information
along travel paths. Industry studies show that
informational/directional outdoor signage that directs motorist
attention to locations and activities nearby will increase
business an average of 15%. These studies also disclose that
signs that include time-and-temperature information increase
consumer attention and enhance retention or recall of the
commercial message. [Research data available at Outdoor
Advertising Association of America Inc. (OAAA), 1859 M Street,
N.W., Suite 1040, Washington, D.C. 20036.]
The viewer of a message displayed on an outdoor structure may act
immediately upon an informational/directional message, like the
weary driver observing the advertisement for a motel located two
exits away. At times, the message may function as a
reinforcement device for a regional or national major media
campaign, which also includes television, radio, and newspaper
advertising. Other times a message may provide public-service
information, such as road conditions, the location of a rest
stop, time and temperature data, or gasoline availability and
pricing information.
The multiple street frontage provided by outdoor advertising is
very valuable. For example, it is not uncommon for a "bulletin"
structure, measuring approximately 10-14 feet x 36-48 feet to
lease for $2,500-$3,500 per face, per month. Anyone questioning
the value of street frontage as provided by an on-premise sign,
should check the advertising rates for outdoor structures in
their area.
Members of the business community are not alone in recognizing
the value of outdoor advertising. Increasingly, cities are
leasing public space to advertisers. This space is found, for
example, on buses, bus shelters, transit stations, and sidewalk
kiosks. Although public advertising space is generally much
smaller than that offered by traditional outdoor structures, in
recognition of the intrinsic value of such exposure, lease rates
of $500 per month per poster face are not uncommon.
Caption 13: Outdoor advertising displays are varied,
multi-dimensional, and expensive in comparison to on-premise
signage. As a barometer for the value of commercial signage in
general, however, they cannot be bested. A call to your local
outdoor advertising agency for local "rate cards" will
dramatically demonstrate how valuable your on-premise street
exposures are.