ROI Numbers are Tough to Ignore

The Big Question for any business owner thinking of  investing in an LED Sign is "will a LED Sign really increase my buiness?" We know the answer is a resounding YES, but don't take our word for it. The Small Business Administraion has found the addition of a LED sign typically results in a 15 to 150% percent increase in business. What will be your expected return on investment (ROI) with the purchase of an outdoor LED sign? Lets take a typical LED display purchase and determine how long it would take to pay for itself using conservative numbers.

Proposed Sign Price: $8,000

Annual Gross Revenues: $150,000

Assumed Increase in Annual Gross Revenue: 15%

Take the annual gross revenues and multiply it by the assumed increase (in this case we will assume a minimal increase of 15%). Take the result of that calculation and divide it by the sign price. That gives you the number of times in a year the new sign would pay for itself. Then take the number of days in a year and divide it by the number of times it would pay for itself in a year. This gives the number of days it will take for the proposed sign to pay for itself in increased gross revenue.

$150,000 X 0.15 = $22,500 = estimated annual gross revenue increase from adding a LED Sign.

$22,500/$8,000 = 2.81 = the number of times the LED sign will pay for itself in one year.

365/2.81 = 130 days = the number of days it will take for the LED sign to pay for itself (in gross revenue).

So the new LED display pays for itself in 130 days. Less than 6 months after the LED sign is installed, the buisness would be in the black. Plug in your numbers to this simple formula and calculate your ROI.  Can your busines afford to ignore the numbers?

LED Sign Viewing Distance

At what distance will your LED sign be viewed? And at what angle? This will help you determine the correct message display character height and minimum pitch required to produce an image that is crisp and lifelike. Longer distances require less resolution and shorter distances require more resolution. If you are traveling 55mph on a freeway and the LED message sign is 600 feet away at a truck stop, the LED message text letters must be at least 20 inches tall to be legible. If you are standing 60 feet away from a LED sign, the message letters need only be 2 inches tall to be legible.

Resolution is the most important factor affecting the cost of your LED sign. More resolution means more diodes and more circuits, which usually means higher cost. How do you determine the resolution of an LED sign? Pitch is the distance between one diode and another. The SMALLER the pitch the HIGHER the resolution. You are probably not a sign expert, but we can give you the knowledge you need on distance and angle to ensure your site and LED sign match up correctly.