Wednesday, 24 Feb 2016 12:53 GMT

Opportunities for Sign-makers

Digital signage has not been the cash cow for the traditional sign industry that many thought. Brendan Perring asks: “Why is this and what opportunities are on offer to sign-makers in this sector?”

An easy sell

Many sign companies have not looked into supplying digital signage to their clients. If they get asked to supply a solution they do not know where to start. There is a large range of screens on the market which are constantly changing. To source a solution you need to be confident that you have chosen a reliable supply source that will provide a total package that also provides after sales support.

The typical package would include the screens, software with license, VESA brackets, and any necessary cables. All these items would normally need to be sourced from different suppliers. Fairfield makes it easier for the industry as they have a range of screens and software packages; they are also able to supply everything the client will need, even with a trade discount.

The key to selling digital is to get a clear brief and make sure the client or the sign-maker understands how to upload content. Good content is key to the success of a good digital screen project.

Good content is key to the success of a good digital screen project”


There is also a case of profit margin, digital signage traditionally has a lower profit margin than a fixed sign, but a higher unit value and some companies are not comfortable with selling a high value item.

It is a much more consultative sale and requires a different set of selling skills. To be successful it helps if you are able to offer a rental or leasing package at highly competitive rates. Another key element to success in this sector is choosing a supplier that understands both the needs of the sign-maker, and the complexities of audio visual technology. As such Fairfield offers a complete service from initial product training through to the final installation.

Perfect partnership

Pat Taylor, director, Dsign
 

In essence, I think it is comfort zones. The traditional signage industry has an awful lot of skills, such as colour control, and their technical or design skills are not under question—but by embracing digital, they are tapping into a sector that is much faster moving and has higher profit margins.

If you look at a council, when they open up their libraries and bus stations it will be full of traditional signage, but they will also be utilising digital signage. If they ask me about having traditional signage on the walls, I would not know because we just do not play that game. But on the digital signage side, when we are handling all the fifth data coming in from the transport systems and the real time information, that is where our comfort zone is.

The differences between traditional and digital signage highlights why digital signage is possibly not a cash cow for the traditional signage industry. The product and business processes are very different, with each side lacking strong skills in required areas.

The overlap and where we can partner with these organisations and share resources is on the architectural side of things, as well as marketing, sales, design, and physical installation.

By being digital, it is a much faster moving environment”


We have been in AV and multimedia since it started, and we have got some good customers and are not out there as an aggressive sales company. We are technically astute and like to keep ahead of the curve. One of our strengths is that we recognise our weaknesses and I think we hit above our weight.

We have got a software package that handles things like delegate management and dynamic wayfinding. For hotels for example, we can give them the edge that when they start booking in customers, we can implement digital signage prior to the person arriving to what room they go in. At concierge, dynamic wayfinding can welcome them and direct them all the way to their room.

The most important step anyone from the ‘traditional’ signage sector can take though is the first one, find a reputable supplier who can offer you technical support at the drop of a hat, get your team trained, and then upsell your new offering to your existing customer base.

Room for growth

Harry Filer, managing director, Messagemaker Displays
 

Perhaps the first point to be made is to recognise that digital signage is still very much a growing market, with potentially all to play for still. At the moment it is not so much a cash cow, more a cash calf. Companies making their entrée into the world of digital signage should therefore not be unduly discouraged if their initial progress is slower than they would like. There is plenty of growth yet to come.

The first step therefore is to identify likely prospects among your traditional sign clients”


A good example of this is the new big screens which are becoming a familiar sight in sports clubs and facilities of all sizes. The big screens are typically deployed alongside traditional signage, offering considerable potential for sales synergy. Messagemaker has made the technology more affordable, enabling smaller stadia to compete with premier division teams, while offering fans an enhanced visitor experience.
 
Acquiring the necessary expertise can be challenging however, and traditional suppliers may struggle to convert opportunities when they spot them. Perhaps the best way for sign suppliers wanting to broaden their offering is to partner with a digital specialist that can complement your existing commercial and industry experience and provide the necessary technical backup.

A reciprocal agency or distributor agreement offers benefits all round, with a combined portfolio that can cover all signage needs. Lastly, the most important ingredient for success is to act ahead to put in place the necessary building blocks so that you are ready to capitalise on potential openings, wherever and however they arise.

Changing perceptions


Danny Chard, managing director, Assigns


The term ‘digital signage’ means different things to different people. To us, at Assigns, we saw digital signage as a natural evolution of what we specialise in: displaying posters in the retail environment. First there were snap frames; simple and effective. Then there came lightboxes; a snap frame poster holder but with illumination. Our Plug and Play Digital Screens were the logical next step as a way of displaying several posters in the same space. Of course, the technology allows you to do a lot more than just present a slideshow, but it still makes sense as a product in the context of what we do.

Digital display screens offer lots of possibilities for content management and the type of message our customers can display. I think this is where the problems arise in trying to sell digital signage to a fairly traditional client base.

There is an underlying assumption that digital screens will require computers to control them, need to be networked, and have expensive software licences that need renewing regularly. I think these aspects are definitely where many companies in our sector have focused, believing the added extras are where the money is. However, I have always thought that this has the potential to make the digital screens themselves too ‘frightening’ to even be considered by a lot of potential customers, thus losing you the sale before you have had a chance to add those extras on.

Digital display screens offer lots of possibilities for content management and the type of message our customers can display”


In truth, our stand alone HD LCD Digital Advertising Displays are more expensive than, say, our LED Lightboxes, but by no means prohibitively so. With their built in media players, simple plug and play technology, and licence free software included with each screen, they are ready to use straight out of the box. This means that even a small independent retailer can benefit from a digital screen and all of its possibilities, without having to be tied into a contract or having to find an IT specialist to install it all. Hang it on the wall, switch it on, upload your playlist from a USB, and you are done.

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