We are a pretty open organization. The Sign Biz Network is the most open and inclusive group I have ever had the pleasure to know. And I'm not biased ;-) The sharing of information on a daily basis within the email group is astonishing, and the social networking - both virtual and real world - is a gift. So it should come as no surprise that we share with other digital sign companies in the hopes that within the material is a gem or two that can help other sign industry entrepreneurs build a better business. We all benefit from high standards for professionalism, environmental sustainability, and collaboration.
We engage in surveys on a regular basis, and the latest is within the family of surveys called, Insights for All. And just as the name proclaims, we share the results, to provide insights that could prove useful for many.
Two parts will be shared here today. One, a quick look at how the use of Sales Consultants in the business has increased over the years. And Two, a look at brand names in media and their market penetration.
The Outside Sales Consultant -Survey Part One
It used to be, a decade ago, that 25% of shops in this chain employed a sales person other than the owner. Today, here are the stats:
Now: 50% of the survey respondents said they employ one or more sales consultants. Of this group, 29% employ one sales consultant, and 21% employ two or more. I believe we are seeing the results of training programs, workshops and manuals to facilitate the hiring and training of this critical team member. The business owners who have sales consultants are often contributing as panelists for workshops on the subject for other business owners in this organization. They are apparently doing a phenomenal job!
Media Faves - Survey Part Two
While this may shake up a few manufacturers and even some distributors, a new survey from May reveals the favorite brands of media used in a worldwide network of sign shops made up of nearly 200 entrepreneurial ventures, founded on the Sign Biz model. I guess what you should infer here is that this is a good representative cross-section of smart and growing digital sign industry performers. They have professional locations, serving businesses with a wide array of digital print products, architectural sign products, video sign services, and much more. I would like to add that we, the partners at the home office, do not coerce or incentivize any particular brand of media. While we have negotiated Group Buying Discounts (GBD) for nearly all media, through preferred supplier partners for this chain, the final selection of favored media for signmaking is going to be determined by the business owner's experience with the product, the delivery options, and the client's needs in their market.
Okay, on with it! There are two numbers that tell the tale. The first is, what percentage of the group use a particular brand. We'll call this "Reach." The second percentage is a weighted percent - multiplying Reach by average percent used in the operation. We'll call this Market Share, Market being all of the available volume for media.
This gives us two pictures of the Brand: One in terms of its Reach, and one in terms of its Market Share. If you are a sign hugger like me, this is interesting information. It is also valuable knowledge, as it can present media options in a new light, ie, brands that satisfy some users which others may not have considered before.
Here's Figure 1: Reach

But wait, there's more! Now for the narrative that connects the above graph with the one showing weighted averages, or Market Share - another picture. These are some of the specific numbers to fill in the blanks:
74% of the respondents use 3M material, and this media represents an average of 28.3% of their media purchases. The range was 1% to 90%.
67.7% of the respondents use Oracal media, and for those who use this brand, it makes up an average of 51.3% of their media supply. The range was from 10% to 95%.
61% of the respondents use Avery media, and for those who use this brand, it makes up an average of 22.37% of their media supply. The range is was from 5% to 99%.
26% of the respondents use Solvex media, and for those who use this brand, it makes up an average of 6% of their media supply. The range was from 2% to 15%.
16% of the respondents use MacTac media, and for those who use this brand, it makes up an average of 5.4% of their media supply. The range was 2% to 10% .
13% of the respondents use Arlon media, and for those who use this brand, it makes up an average of 36.25% of their media supply. The range was from 15% to 30%.
10% of the respondents use Aspire media, and for those who use this brand, it makes up an average of 38.33% of their media supply. The range is was from 20% to 65%.
6.45% of the respondents use FDC media, and for those who use this brand, it makes up an average of 15% of their media supply. The range was from 10% to 20%.
6.45% of the respondents use General Formulations media, and for those who use this brand, it makes up an average of 20% of their media supply. The range was from 10% to 30%.
6.45% of the respondents use Intellicoat/Magic media, and for those who use this brand, it makes up an average of 22.5% of their media supply. The range was from 2% to 15%.
6.45% of the respondents use LexJet media, and for those who use this brand, it makes up an average of 22.5% of their media supply. The range was from 10% to 35%.
6.45% of the respondents use ShineRite media, and for those who use this brand, it makes up an average of 54% of their media supply. The range was from 18% to 90%.
6.45% of the respondents use Titan brand, and this makes up an average of 15% of the purchases for these respondents.
3% of the respondents use Vector brand, and this makes up an average of 90% of the purchases for these respondents.
29% of the respondents use other media, each brand being purchased by approximately 3% of the entire group surveyed. For those who use these other brands*, the purchases make up an average of 17% of their media supply. The range was from 10% to 50% .
Here is the chart depicting weighted averages by brand, or Market Share:
How can you use these statistics to your advantage?
You may be a die-hard Oracal user, with some 3M mixed in. You fit the profile of the majority of digital sign shops. But what if you are using 5 or more brands, none of which are specialty films? By re-examining your purchases, you can combine your annual expenditure on media to negotiate a better rate on one or two of those brands.
You may be a die-hard Oracal user, with some 3M mixed in. You fit the profile of the majority of digital sign shops. But what if you are using 5 or more brands, none of which are specialty films? By re-examining your purchases, you can combine your annual expenditure on media to negotiate a better rate on one or two of those brands. How about looking into a house brand, to see if it fits your needs, matches the quality of the brand name, and saves you some money? You now have a list of the speciality and house brands used by many shops in this network.
I firmly believe that what gets measured, improves. Until next time, be your own yardstick ;-)







0 comments:
Post a Comment