Welcome to Signage for Your Business.

Written and Published by : Small Business Association ‘SBA’
Reviewed and Adjusted by : USA LED Display ‘ULD’

Effective signage is a critical component of your retail business' success, and can contribute to the success of all businesses.   To provide in depth information about signage and your business, we have divided the information into categories, with the links shown identifying these categories. Click on your choice for more detail.   After you've studied these pages, we recommend you include proper signage in the financial plans for your business. Effective signage is a key asset you'll need to become successful.

Electronic Message Centers (EMCs)
Also called Variable Message Centers

Electronic variable message centers are computerized programmable electronic visual communications devices capable of storing and displaying multiple messages in dozens of formats and at varying intervals. Although Electronic Message Centers (EMCs) can be any one of the three primary types of signs (building-mounted, freestanding, or interior), their unique and revolutionary nature warrants a separate section.
The last few decades have witnessed simultaneous revolutions in lighting and computer technology. This rapidly developing technology has made it possible for even a small business with a simple message unit to produce high-impact changeable copy video/graphic displays.   To best understand electronic message centers, review their history and technology.   This section continues with discussions about:

-Features & Advantages of EMCs
-An Answer to the Challenge of Changing Demographics
-Electronic Message Centers: Safe and Legal
-Frequently Asked Questions about EMCs,  (including types, how they can be used, their cost-effectiveness, safety factors and more. )

In summary...
The changing sign industry has answered many needs with electronic message centers. Depending on your business' circumstances and needs, they are worth serious consideration.

Why Use Signage?
"Why should I have a sign?" is a question often asked by business owners. The answer will vary depending on your business type and format. In a highly impulse oriented business, good signage can be the difference between the success or failure of the business. The profile of your trade area also impacts your signage needs. Good signage can increase a business's opportunity for success.

Signs are the most affordable means of advertising for many businesses, and most businesses -new or not don't have a dollar to waste. The United States Small Business Administration Bulletin Number 101 on signage for businesses says, "...signs are the most effective, yet least expensive form of advertising for the small business." What's more, signs are always on the job for you, advertising 24 hours a day, 365 days a year.

This section introduces the term "on-premise" sign, as well as presents information that supports why a business must have an on-premise sign to be to most successful. So, what is an "on-premise" sign, and why the focus on that particular type? An on-premise sign is:  "A communication device whose message and design relates to a business, an event, goods, profession, or service being conducted, sold, or offered on the same property as where the sign is erected."

Simple enough, and there are dozens of examples of the many types of on-premise signs in our "Types of Signs" and "Sign Gallery" sections for your review. Before you go to either section, however, we recommend you complete this section by following these next links to review additional information that helps answer the question "Why Should I Have a Sign? Compelling Reasons for an On-Premise Sign
Visit the case studies that illustrate different reasons for effective signage.

Important Note:
Signs are considered "speech", and in the United States are legally protected as such. To help you understand the legal aspects of signage, as well as their protection under the First, Fifth and Fourteenth Amendments, we've developed the "Legal Considerations" section. We mention this briefly here so that you're aware of this fact, as well as are aware that - as a business asset - your sign can have certain protections under law.

Types of Signage
Signs are expanding communication mediums that respond to our mobile lifestyles. Signature buildings such as the widely recognized McDonalds restaurant building designs are signs. A facelift to a building such as the old western village false storefronts is also considered a sign. Thoughtful use of the visibility features of your business site expands your ability to communicate with passersby. Regardless of the type used, your signage must be appealing to your customers and the message must be readable.
When faced with the task of reviewing the many choices of signs available, it helps to approach it by first looking at the three primary locations in which you will typically use on-premise signs:

-Building Mounted signs
-Freestanding signs
-Interior signs

Many of the sign types fall into more than one of the above location-based categories. For example, channel letters can be either building-mounted, freestanding, or even an interior sign. As you review this section, keep in mind that there are dozens of possible sign options and configurations, each as unique as a business' needs. We present in this section, as well as in our "Sign Gallery," the most commonly used types of signs.   Here are some generalized points, as an intoduction to sign types:

-Building mounted on-premise signs may be attached to the roof, parapet, marquee, or building fascia. These signs may be either parallel or perpendicular to the building surface.

-Freestanding on-premise signs are generally supported by a structure attached to or cast in a foundation. . The structure and attachments to the foundation may be concealed with a decorative covering. Freestanding signs can be further enhanced by landscaping.

-On-premise signs can be either internally or externally illuminated (click to link to additional important detail about illumination). For retail businesses, on-premise signs should be illuminated to accomplish communication with potential customers during nighttime hours.

-Sometimes a building itself functions as a sign. This occurs most often with franchise and chain retail operations, where standardized (or "signature") buildings and colors, as well as traditional on-premise signage, announce the presence of the business.

-Buildings also may be fitted or retrofitted with "trade dress" to design a theme. Retrofitting of a building-façade is often described as a "face lift." Both building and freestanding signs should be designed to echo the theme or trade dress.

-Changeable copy boards or electronic message centers enhance a sign's effectiveness by providing space to advertise time dependent messages. Such sign or sign additions can be electronically controlled (the electronic message center), or changed manually (the changeable copy sign).

-Interior on-premise signs are those that advertise the location of businesses located in a common building such as a mall, office building, entertainment complex etc. They have two major purposes: (1) to influence buyer choices and encourage certain "point of purchase" transactions; and (2) to provide guidance in a safe and efficient manner, as required by local regulatory authorities (such as the Fire Marshall) and federal law, particularly the Americans with Disabilities Act (ADA) (additional detail is in the "Interior Signage - The Background & The Evolution of an Industry" section, through the link shown below).

In summary...
Primarily, there are building mounted, freestanding and interior signs, within which are many types of signs. Carefully reviewing the many types of signs, and considering how well they will meet your location and business' needs, will enable you to select the kind of signs you need for your greatest business success.  The Signage Categories:  Each of the following links expands on one of the primary signage categories and presents example photos of actual signs.

-Building Mounted signage
-Freestanding signage
-Interior signage
-Interior Signage - The Background & The Evolution of an Industry

Understanding the Value of Signage
There is an old axiom that the 3 keys to successfully selecting real estate are "location, location and location". The 3 keys that guide the successful selection and development of commercial properties are Visibility, Accessibility and Parking.
An effective on-premise sign is critical component of visibility, and the sign should receive the same careful attention as these other components. Without a properly designed and placed on-premise business sign, a commercial site cannot function at its full economic potential.
This section presents information about:

-Understanding the value of signage
-Determining what an effective sign will mean for your business' success
-Working with and possibly correcting problems with existing signage, and
-Using signage to change customer behaviors.

Topics on this page include:
The Functions of the On-Premise Sign/ Branding a Site/ Developing and Measuring Readership/ Acquiring New Customers/ Modifying Customary Purchase Habits/ The Signage Appraisal Process/ Visit the Signage Case Studies/ The Functions of the On-Premise Sign .
An effective on-premise sign is critical component of visibility, and the sign should receive the same careful attention as these other components.

1. It develops a memory for a location and the products or services available at the location.
2. It reinforces a memory and extends recall of other advertising efforts.
3. It attracts new customers by prompting first-time or impulse visits or purchases.
4. It modifies customary purchase decisions or habits. Changeable copy and temporary window signs are especially effective in encouraging variation from accustomed consumption patterns. (For more about modifying customary purchase habits, see the section that follows.)

Developing and Measuring Readership
How do you know if your sign is (or is not) branding your site for future reference by potential customers? You determine readership.  Readership advertising effectiveness tests whether a message is effectively speaking to the intended audience. Two of the most commonly used research techniques are the recognition and recall tests discussed above. Rating services conduct the tests and tabulate the results for all major-media advertisers (i.e., television and newspaper advertisers rely on Nielsen Ratings Services). Small business owners not engaged in franchised or chain business operations, however, usually do not have access to national rating service readership tabulations; these independent small business owners may require the services of a local market researcher to obtain readership measures. Often, on-premise sign companies and trade associations will assist in compiling data.

Why do you want to measure readership? Without knowing the effectiveness of your signage, you won't know how well you are doing, or what you might want to change. For your greatest success - with a sign and therefore with your business - measuring readership is a diagnostic tool so you can fix whatever is not working, and increase what is working.

The importance of signage to mobile consumers is underlined by the fact that many are in a hurry. By way of example, Burger King Corporation conducted a survey 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 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. Here are the results.

How did you first become aware of this restaurant?
Participants' Responses Quick Service Food
(% of responses) Family
Restaurant
(% of responses) Atmosphere
Restaurant
(% of responses)
Saw it (the sign) while passing 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%

The spontaneous nature of the QSF visits at 35% has implications for most business strategies, particularly advertising in the form of on-premise signage. 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)).

In another example, The Institute of Transportation Engineers (ITE) has trip generation rates that are derived from counts taken at the driveway of various land uses. While typical trip generation rates are derived from counts taken at the driveways of various land uses, not all trips generated at the driveway represent new trips made for the express purpose of entering the 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 Institute of Transportation Engineers (ITE) as a "pass-by trip"; for our purposes, it is defined as an "impulse" stop.

The percentage of pass-by trips or impulse stops varies by land use. The following table sets out ITE estimates regarding the percentage of stops attributable to motorists for whom the site is not a scheduled destination. The table demonstrates that impulse trade is very important to many businesses. Effective on-premise communication can help persuade passersby to stop and shop.

Type of Land Use Impulse-Stop
Percentages
Shopping Centers:
 Larger than 400,000 sf Gross Area 20%
 Between 100,000 to 400,000 sf Gross Area 25%
 Smaller than 100,000 sf Gross Area 35%
Convenience Market 40%
Discount Club/Warehouse Store 20%
Fast Food Restaurant  40%
Sit Down Restaurant  15%
Service Station  45%
Supermarket  20%

 In the modern marketplace, the right place-based advertising will effectively and economically permit the local shopkeeper to compete, even with the mass merchandiser or large retailer.
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Acquiring New Customers
In 1995, the California Electric Sign Association (CESA) and the International Sign Association (ISA) commissioned a major study of on-premise signage performance by the University of San Diego. This study had two parts.

Part I of the study involved analysis of a group of variables, including signage, location, hours of operation, population demographics and geographic characteristics on sales at 162 southern California locations of a major fast-food chain. These variables were tested at each location to predict the impact of on-premise signage upon:

1.Annual sales revenues
2.Annual number of transactions
3.The average dollar amount spent per transaction.

The results of the study indicated that the number of signs at a particular site has a significant and positive impact on both the annual sales revenues and number of annual customer transactions. For example, from the results of the study, the researchers were able to predict:

1. On average, one additional on-premise sign resulted in an increase in annual sales revenues of 4.75%. This translates to a $23,750 increase in average sales revenues for a typical store in the study group with annual sales of $500,000.
2. On average, one additional on-premise sign increased the annual number of transactions by 3.93%. This translates into more than 3,900 additional transactions for a store with an annual average of 100,000 transactions.
3. On average, one additional 36-square-foot wall sign added $0.06 per transaction, while one additional 144-square-foot pole sign added $0.78 per transaction.
Part II of the study involved analyzing seven years of weekly sales data for "Pier 1 Imports" to measure the effects of modifications, additions, or removal of on-premise signage on sales performance. The results showed that "on-premise signage has a statistically significant and financially substantive impact on the revenues of a site [and]... is a significant constituent of the factors causing the success of a retail endeavor." In brief:

1. The addition of new signage to previously unsigned buildings, and the replacement of existing signage (generally, with larger signs) resulted in an average revenue increase of 5%.
2. The addition of a pole sign, or a plaza identity sign including the store's name, resulted in an average increase in weekly sales of 5-10%. The increase was attributed by the researchers to the new signs' enhancement of site visibility to passing traffic.
3. The addition of small directional signs indicating entrance and exit routes resulted in weekly sales increases ranging from 4-12%. The increases were attributed to the signs' ability to guide a site-bound shopper more than any specific advertising effect.

These increases in revenues, as a result of signage, demonstrate the positive effect on profitability at a specific site, especially given that normal profits in the retail industry are approximately 1-2%.

The California Electric Sign Association (CESA), the International Sign Association (ISA), the Sign User Council of California, and the Business Identity Council of America sponsored the study. A summary of the findings appears in The Economic Value of On-Premise Signage, a compendium of signage-related research results and articles (e.g., sign amortization; copyright and trademark protection.) The booklet was published jointly in 1997 by CESA and ISA.

Highest and Best Use Analysis
Prior to the above described three-part appraisal process, a highest and best use analysis of the site is undertaken. This analysis establishes the most profitable use of a site in light of any legal, physical or financial constraints. Highest and best use (as applied to signage) means that the on-premise sign is viewable by the intended audience (i.e., passing motorists, pedestrians), and that its copy can communicate as it's meant to (i.e., is clearly visible, legible and understandable by the intended audience).

What is the most effective sign for my business?
The answer here will vary somewhat depending on your business, location, and other factors. In general, following these guidelines will increase the effectiveness of your sign.

-The best sign for your business is a sign that will attract the most customers and project the image you desire.
-Your sign must be visible and easy to read for people who are driving and walking past your business.
-Your sign must be attractive and appropriate for your type of business.
-A sign will serve to remind existing customers of your business and location, and provide new customers with a valuable visual indicator about the products or services you offer.
-Your sign should be as large as allowable for your location.

 Additional in-depth material is available in the "Design Tips" and "Evaluating Your Business Location's Signage Needs" sections in the "Obtaining Your Signage" section.

What should my signage say?
A successful sign will communicate effectively and concisely. Therefore, here are some general guidelines:

-In as few words as possible, clearly communicate what you are selling.
-A picture depicting your product or service adds impact and clarity.
-Present the image you want to project that will attract customers and entice them to stop, shop, and buy.
-Determine the best sign type, size, colors, and placement, keeping in mind what the sign will look like from the street and sidewalk. The proper design of your sign is critical to its effectiveness.
-Crowding the sign with too many words or lines of text makes it impossible to read from a distance. Use as few words as possible. In general, not more than 5-7 words, with 3-5 being ideal.
-Don't try to sell your customers with the sign -- save that type of information until they are in your place of business.

People are looking through a windshield, in traffic, day and night and in all types of weather. Help your customers both see and read your sign easily. In addition to this answer, be certain to review the information available in the Design Tips section.

Is signage expensive?
-Signage is the least expensive, yet most effective, form of advertising for independent and national retail businesses.

-You pay for the sign once and it works for you 24 hours a day, 7 days a week for years. Use of other media requires paying month after month and you never have the benefit of ownership. You also have no assurance that you're reaching potential customers.
-From a business owner's perspective, a sign should not be viewed as an expense, but as a capital investment. When you factor in your return on investment, signs are not expensive. An effective sign will most likely pay for itself many times over.
-The price for signage will vary greatly depending upon the size, design, style, manufacturer, and mounting type.

In addition, please review the Understanding the Value of Signage section of this site.

How can I determine whether my current sign is effective, or what should be changed?
As with measuring a new sign's effectiveness, evaluating your existing signage will require assessing readership. Sign companies often offer this service, however you can also conduct simple "customer surveys" in which you ask your customers a series of questions about your existing signage, such as the words, colors, and size, and whether they can even recall what it looks like from memory. Open discussions like this, with your customers, will provide valuable insights. You may discover that customers remember the graphic or image on the sign, but not the business name, or maybe it's the color that stands out in their memory. Listen closely and carefully, because these are answers that can help you determine not only the effectiveness of your existing sign, but also suggestions about what you might do differently with a new sign.

Tip: Remember to thank your customers for their time and input after the survey with a tangible item that further reinforces your business' product or service. You might extend a discount for future services, or present them with a gift related to your business (a mouse pad from a computer store, a coupon for the daily special from your cafe, or similar).

How do I choose a sign company?
You comparison-shop for other products or services, and a sign is no different. There are several initial approaches, including reviewing examples of their work, speaking with their references, and doing your research. Then, consider as you would with any vendor:

-The quality of the signs offered
-The sign company's ability to design and deliver a sign that fits your needs
-The product knowledge and experience of the sign company's personnel
-The price, quality and value offered
-The follow-up and ongoing service provided
Additional information, as well as a "tool" to assist you in shopping for a signage company, is available in the "Obtaining Your Signage" section.

What legal rights do I have as a sign owner?
In summary, you have the right to display a sign that conspicuously and legibly identifies your business. Your right to business identity is protected by the United States Constitution, federal laws, state laws, and important legal principles established through litigation. Briefly, these protections include:

1. The United States Constitution - the First, Fifth and Fourteenth Amendments (Additional detail is provided in the "Legal Considerations" section through the link provided below.)
2. The Highway Beautification Act. This Act regulates the location and types of signs that are allowed along the nation's highways.  On-premise business signs and electronic variable message signs are among those exempted in the Act.
3. The Lanham Act. A federal Act that deals with trademark protection.

A federal appeals court in California has interpreted the Lanham Act as prohibiting a city from requiring that a federally registered and protected logo mark or name on a sign be altered as a condition of approval for a sign permit. As a result, in nine western states -- including Arizona, California, Nevada, Oregon & Washington -- a city or county may not force the user of a registered trademark to change the color, typeface, or design of the mark to comply with local ordinances or design criteria. However, the federal appeals court for the states of Connecticut, New York and Vermont, has interpreted the Lanham Act as allowing local government sign codes in those states to require the alteration of a federally protected mark. Outside of the states mentioned, the law is still unsettled on this issue, and a business owner who is asked to alter the federally protected mark on a sign should contact legal counsel.  There are also state trademark laws that offer similar protections in varying degrees.

4. Copyright and patent protections. Your original ideas (i.e. logos, sign design, etc.) can and should be legally protected by copyrights and patents, as appropriate.

- Legal Considerations
- Introduction
- While a combination marketing tool, communication device and ideally, pleasing art form, signage is considered "speech", and in the United States, is legally protected as such. To help you gain a fundamental understanding of the legal aspects of signage, its protection under the United States Constitution, and its regulation under federal, state and local law, review the following 3 sections.