“There are two surefire methods to fail financially…The first is to spend when one should be saving and the second is to save when one should be investing” (1).
Business owners, property managers, CFO’s, and other money-conscious careers are often looking for ways to effectively cut costs in order to increase profits and save money. There are several areas of a business where this can be effective and should be pursued whenever it makes sense in the long run. However, trouble comes when businesses begin to prioritize saving money above all else and actually end up losing money down the road.
Take, for example, a decision the electronic services company, Circuit City. Back in 2007, in an attempt to cut costs, the company terminated over 3,000 of its best salesman. They then replaced these experienced salesmen with newer employees whom they could pay less money. Yes, in the short term, they saved a lot of money. However, their sales dropped significantly and by November 10, 2008, they filed for bankruptcy (2).
The cutting cost strategy is not only used with salaries and employees, but also with the products and items companies spend money on. As a sign company, we have seen time and time again when a business was much more concerned with getting the least expensive sign possible than with investing in a quality sign that would reflect well upon the business and draw in new customers. Because, “the fact is that cheap items of inferior quality might have to be replaced more often, a fact that could negate any savings potential. You might even find yourself paying more to buy a new product than if you’d purchased the more expensive, high-quality one the first time around” (3).
Last week we looked at a common sign mistake that is often made when a company does not purchase a Monument Sign, effectively cutting down on their company’s visibility. Today, we will look at another common sign mistake that occurs when a company attempts to save money at the expense of investing in a quality sign.
Sign Mistake #2: Not Investing in a Quality Sign
In our experience, often people fall into this sign mistake trap because they do not realize how powerful and effective a quality sign can be for a company. They understand the importance of having a sign in order to be easily identified and found, but struggle to believe that investing in a top sign by a top sign company will not only save them problems down the road, but will also greatly benefit them today.
But the reality is that “Poor signage can deter consumers from entering a store, with over half (52%) saying they are less willing to enter a store with . . . poorly-made signs” (4). This statistic takes the theory that quality signage is vital for a business and turns it into fact. If a business, in the interest of cutting costs, purchases a low-costing sign, the finished product with reflect that and over half of their potential customers will see this is as a direct reflection of what type of company you are.
This is true even if the sign “looks” well-designed. Because while it may initially be visually appealing, the low-quality of the materials the sign is made out of, will get you a sign with good looks that fade quickly and will need a refurbishment sooner than you would think. And let’s be honest, consumers can tell the difference between a sign made of top materials and one made of inexpensive ones. Low-quality signage is much like buying an extremely inexpensive car that will save you money in the moment, but cost you a lot down the road when it inevitably has problems.
Well-made signs with an elegant design and the highest quality of materials will give you a sign that is visually appealing and lasts your company for years without you having to spend another dime. Whether you are purchasing a Monument Sign, Wall Signs, Pole Signs or any other Landmark Sign, investing in a quality sign now will save you money in the long run and bring new business right to your door.
Experience and innovation have been the backbone of Landmark Signs for more than 40 years. Located in Orange and servicing all of California, our services include sign design, sign manufacturing, and sign installation. Choose our specialized sign expertise to turn your ordinary sign into a Landmark!