Your sign is your best permanent advertising
Unlike a radio spot, a Facebook ad or a newspaper insert, your commercial sign works 24 hours a day, 365 days a year, with no recurring cost. It doesn't switch off when the advertising budget runs dry.
At AGS Signs, we have worked with hundreds of businesses across Montreal. Here is what the data says about the return on investment.
What the research shows
- According to the Sign Research Foundation, 60% of consumers admit they have not entered a business because its sign was unappealing or missing
- 50% of customers reported discovering a new business thanks to its sign
- A new sign generates an average increase in foot traffic of 5% to 15%
- Businesses with night lighting gain 40% to 60% more visibility after dark
How to calculate your ROI
Here is how to estimate your return on investment:
- Cost of the sign: $5,000 (example)
- Service life: 12 years = 4,380 days
- Cost per day: 5,000 ÷ 4,380 = $1.14 per day
- Current traffic: 50 customers per day
- Expected increase (10%): 5 additional customers per day
- Average value per customer: $25 (restaurant example)
- Additional revenue: 5 × $25 = $125 per day = $45,625 per year
Over 12 years, a $5,000 sign can generate more than $500,000 in additional revenue. The ROI is dramatic.
⚠️ An important caveat
These numbers assume a quality sign: well designed, well lit and consistent with your brand identity. A poorly made or inconsistent sign can have the opposite effect.
What maximizes the return
- LED lighting: being visible at night multiplies your chances of catching traffic
- Legibility: your name must be readable in two seconds from the street
- Consistency: the sign should match your interior and your social media
- Optimal placement: height and angle calculated for the real reading distance
- Maintenance: a clean, fully working sign projects a professional image
FAQ
Can the cost of a sign be deducted as a business expense?
Generally yes, but tax rules vary with the nature of the expense. A permanent sign is often capitalized and amortized over its useful life. Check with your accountant for the details that apply to your situation.
How do I measure the real impact of my new sign?
Compare your revenue three months before and three months after installation, allowing for seasonal variation. Also ask new customers how they found you — you will be surprised how many mention your sign.
Ready to calculate your own return?
Tell us about your location and your traffic. We will put together a quote and a realistic estimate of what the sign can bring back. A sign maker with 30 years in the trade, in Montreal. Free quote within 24 to 48 hours, no obligation.