When I first got in the billboard business, I assumed that the taller the sign, the better the sign. When I was driving down the interstate and I saw a really tall billboard, I would think to myself “now there’s a valuable sign”.
I used to compare my signs to others by saying “my sign’s the tallest and, therefore, is the best”. Unfortunately, that’s a bad mindset and I messed up some great opportunities in my quest for being the “tallest”.
The whole point to a billboard, from the advertiser’s perspective (and they are the boss in reality), is for the billboard to have maximum visibility of their ad message. The easier and longer the traffic can read the ad message, the better.
Being real tall doesn’t often get this job done.
Tall signs actually reduce the ability to read the advertiser’s message for two key reasons:
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A sign that is twice the height of the other signs creates a reduction of the apparent size of the ad message by a huge percentage. It’s just math – the farther away something is, the smaller it appears. In Houston, for example, where signs can easily be over 100’ to the bottom of the ad message, giant 14’ x 48’ bulletins look like 4’ x 8’ sheets of plywood. The average driver in Houston will have trouble believing that the ad on top of a 100’ monopole is the same size as that on a 30’ monopole – it looks like about 50%.
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Tall signs go out of your field of vision quickly, and so you cannot read the message very long and certainly not from a distance where the copy is legible. Just as the traffic can begin to read the exit, the sign goes out the “top” of their windshield and so they move on to the next ad message. Now, you may argue that they can see the tall sign from farther back, as it stands majestically above the trees and other obstructions, and that is true, but you can’t read the copy except for the largest words, so you don’t really even know what they are selling. Unless the advertiser’s message is “Wendy’s Exit Now”, the value of the copy is great impaired.
I learned this lesson the hard way on my colossal 120’ high 20’ x 60’ monopole in Dallas. I was so proud of building one of the largest signs in the city that I never bother to think of what the appropriate height would be – only what the tallest I could afford was.
As a result, instead of a dominant giant 20’ x 60’ ad face dwarfing a sea of 14’ x 48’ ad faces, instead I had what looked like a 14’ x 48’ on steroids. The mega height made the ad face look no larger than the surrounding signs, and it also made the sign hard to read except from a large distance – the sign was already out of your field of vision, out of the top of your windshield, from about 1,000’ away.
Tallest may be important in basketball, but in sign world, it’s often a misunderstood negative!
Thursday, June 23, 2011
Tuesday, June 21, 2011
The Best Start-Up Business Model
With Flipping single family homes a thing or the past, it’s time to examine other real-estate oriented options for more fertile territory. One area that is often overlooked is outdoor billboard media – basically big signs that advertise located on highways and roads. These old, giant players in the advertising world are suddenly becoming the darlings of media buyers the world over, and creating some exciting opportunities for aggressive individuals who are willing to play.
To enter the billboard business, all you need is a state and /or city license (which is pretty easy and cheap to obtain) and a desire to find new locations. Through “flipping” leases and permits (similar to flipping single family homes, only with virtually no risk), you can get in the business with practically no capital. Flipping billboard leases and permits can be very rewarding financially – you can earn from $5,000 to $200,000 per flip if you work hard and have some luck.
The other option is to build and operate your own billboards. Again, leverage is good with bank loans and 80% of construction costs. And billboard rents are still increasing at often over 10% per year. Over time, you can pay your billboard loan off (normal amortization periods are 7 to 10 years), and then keep the monthly income, or choose to sell to a competitor for big dollars.
With two of the Forbes 400 billboard billionaires (John Kluge and Arturo Moreno) and a host of famous folks who got their start in the industry (think Ted Turner), shouldn’t you give it some thought?
For more information on this exciting opportunity go to www.outdoorbillboard.com, or call (800) 937-6151 today!
To enter the billboard business, all you need is a state and /or city license (which is pretty easy and cheap to obtain) and a desire to find new locations. Through “flipping” leases and permits (similar to flipping single family homes, only with virtually no risk), you can get in the business with practically no capital. Flipping billboard leases and permits can be very rewarding financially – you can earn from $5,000 to $200,000 per flip if you work hard and have some luck.
The other option is to build and operate your own billboards. Again, leverage is good with bank loans and 80% of construction costs. And billboard rents are still increasing at often over 10% per year. Over time, you can pay your billboard loan off (normal amortization periods are 7 to 10 years), and then keep the monthly income, or choose to sell to a competitor for big dollars.
With two of the Forbes 400 billboard billionaires (John Kluge and Arturo Moreno) and a host of famous folks who got their start in the industry (think Ted Turner), shouldn’t you give it some thought?
For more information on this exciting opportunity go to www.outdoorbillboard.com, or call (800) 937-6151 today!
Wednesday, June 15, 2011
The Importance of RV Park Signage
One of the most overlooked improvements you can make to your RV Park or Campground is professional-quality signage. Good looking signage gives customers a great first impression, and has a real purpose -- giving good information and directions. It’s the amenity that keeps on giving; making your job easier and looking good while doing it.
Many RV Park and Campground owners don’t want to spend the time or money creating good signage. They are prone to just hand write some letters on a good old piece of plywood and nail it to a tree or lean it up against a wall. Boy, that sure looks good to your customers!
Nobody would disagree that great signage has many benefits to the RV park owner including:
· Makes a great first, and lasting, impression on your customers, making them feel good about their choice and increasing the odds they’ll come back.
· Gives the customer accurate instructions on when to check in, where to go etc.
· Leads to higher appraised value when financing.
· Can cause the RV park to sell for a higher price to a new owner.
So if we all agree on this, then why would you not have good quality signs in your RV park? Normally it’s money that stands in the way. Here is some ideas on how to improve your signage on the cheap:
· Make the standard post to hold up all of your signs a 4” x 4” wood post sleeved in white PVC. Then put a nice white PVC cap on the sleeve. This low cost finishing touch makes your old wooden post look great. And the PVC never needs paint. You can even use this trick on any existing 4” x 4”.
· Convert all your signs to vinyl lettering on painted aluminum. I use white lettering on a forest green aluminum background, but there are many other choices. The key is that the finished product lasts virtually forever and requires no painting or maintenance. And you can get signs like these inexpensively at Kinkos or Fast Signs. They are strong and can be easily attached to almost any surface.
· Consider putting your entire budget into your entry sign. This is where you make the first impression of your business, and customers may not come in if the sign looks less than professional. For entry signs. I use routed PVC. I chose this because it is permanent, needs no maintenance or painting, an is hard to vandalize. The signs I installed a decade ago look as great today as they did then. And you can choose a color scheme to complement your park and your other signage.
Before you re-paint that old plywood sign, consider the cost of perpetual maintenance and periodic replacement of your poor quality sign against the program I have just outlined. You will soon see that the permanent solution is better financially.
Great signage can mean better sales and greater re-sale value. Invest in good signage, and the dividends will be endless!
Many RV Park and Campground owners don’t want to spend the time or money creating good signage. They are prone to just hand write some letters on a good old piece of plywood and nail it to a tree or lean it up against a wall. Boy, that sure looks good to your customers!
Nobody would disagree that great signage has many benefits to the RV park owner including:
· Makes a great first, and lasting, impression on your customers, making them feel good about their choice and increasing the odds they’ll come back.
· Gives the customer accurate instructions on when to check in, where to go etc.
· Leads to higher appraised value when financing.
· Can cause the RV park to sell for a higher price to a new owner.
So if we all agree on this, then why would you not have good quality signs in your RV park? Normally it’s money that stands in the way. Here is some ideas on how to improve your signage on the cheap:
· Make the standard post to hold up all of your signs a 4” x 4” wood post sleeved in white PVC. Then put a nice white PVC cap on the sleeve. This low cost finishing touch makes your old wooden post look great. And the PVC never needs paint. You can even use this trick on any existing 4” x 4”.
· Convert all your signs to vinyl lettering on painted aluminum. I use white lettering on a forest green aluminum background, but there are many other choices. The key is that the finished product lasts virtually forever and requires no painting or maintenance. And you can get signs like these inexpensively at Kinkos or Fast Signs. They are strong and can be easily attached to almost any surface.
· Consider putting your entire budget into your entry sign. This is where you make the first impression of your business, and customers may not come in if the sign looks less than professional. For entry signs. I use routed PVC. I chose this because it is permanent, needs no maintenance or painting, an is hard to vandalize. The signs I installed a decade ago look as great today as they did then. And you can choose a color scheme to complement your park and your other signage.
Before you re-paint that old plywood sign, consider the cost of perpetual maintenance and periodic replacement of your poor quality sign against the program I have just outlined. You will soon see that the permanent solution is better financially.
Great signage can mean better sales and greater re-sale value. Invest in good signage, and the dividends will be endless!
Monday, June 13, 2011
Need an Attitude Adjustment? Think RV Park Service!
The last time I was at a National Park, I noticed that there is a certain "feel" to being there. It's a happy, safe feeling, kind of like being a kid at your Grandmother's house. And I think you get that feeling from the attitude of the Park Rangers and employees.
So what makes National Park employees different and so attractive as role models for RV Park Management? I think the reasons are numerous:
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The Uniform: You don't have to wear a specific uniform, but some reasonable dress code sure helps, coupled with the RV Park name on a shirt or a badge. It creates trust with the customer that you are legitimate and gives you a "big company" feel that people tend to favor. It sends the subliminal message to the customer that you care about their stay and stand behind that pledge. You can buy off the internet custom cotton polo shirts with the RV Park name sewn on and they look as good as FedEx. Couple that with some khaki pants and you have a top-notch look.
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The Park Service teaches a positive, friendly attitude. Then you are happy. It makes the customer happy too. Nobody wants to be greeted with "what do you want?" upon arrival. "Hi, how can I help you" sure works a lot better for customer retention and repeat business.
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Fair solutions to customer problems. At the Park Service, the customer is always right within certain set boundaries. A study has shown that a customer has greater satisfaction with a business that screwed up at all. When a customer is unhappy for any reason, be sure to fix the problem happily and quickly. Word will get around.
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Quality signage. Not to beat this to death, but having professional looking signage sure makes you look a lot better as a business. And it costs very little to make great signage over junk signage. The Park Service has some of the best RV signage to be found anywhere.
If you are trying to improve the look and success of your RV Park, I would recommend you look no further than the Park Service for your inspiration. While, they are not perfect, most of the National Parks I have been to do a great job, and every RV Park would be money ahead to follow their lead.
So what makes National Park employees different and so attractive as role models for RV Park Management? I think the reasons are numerous:
*
The Uniform: You don't have to wear a specific uniform, but some reasonable dress code sure helps, coupled with the RV Park name on a shirt or a badge. It creates trust with the customer that you are legitimate and gives you a "big company" feel that people tend to favor. It sends the subliminal message to the customer that you care about their stay and stand behind that pledge. You can buy off the internet custom cotton polo shirts with the RV Park name sewn on and they look as good as FedEx. Couple that with some khaki pants and you have a top-notch look.
*
The Park Service teaches a positive, friendly attitude. Then you are happy. It makes the customer happy too. Nobody wants to be greeted with "what do you want?" upon arrival. "Hi, how can I help you" sure works a lot better for customer retention and repeat business.
*
Fair solutions to customer problems. At the Park Service, the customer is always right within certain set boundaries. A study has shown that a customer has greater satisfaction with a business that screwed up at all. When a customer is unhappy for any reason, be sure to fix the problem happily and quickly. Word will get around.
*
Quality signage. Not to beat this to death, but having professional looking signage sure makes you look a lot better as a business. And it costs very little to make great signage over junk signage. The Park Service has some of the best RV signage to be found anywhere.
If you are trying to improve the look and success of your RV Park, I would recommend you look no further than the Park Service for your inspiration. While, they are not perfect, most of the National Parks I have been to do a great job, and every RV Park would be money ahead to follow their lead.
Friday, June 10, 2011
Investing in RV Parks
Rv parks can have good cash flow, without most of the traditional headaches of being a landlord. The downside? (Every investment has one.) The income can be variable and unpredictable.
We used to travel in a conversion van that we sometimes camped in. When staying at RV parks, I noticed that the managers always seemed relatively relaxed and cheerful. I think this may be because the job is not that stressful. It certainly isn't like being a landlord.
First, as an owner/operator of an RV park, you don't own any housing or vehicles that need to be repaired. Every tenant is responsible for their own Recreational Vehicle. You need only maintain the common areas, and can do that how you want.
Second, even if they stay for months, you can collect in advance and ask them to leave on a day's notice if they cause trouble or don't pay. Regular tenant/landlord law does not apply. These are very mobile residences, unlike regular "mobile homes."
Finally, you have visitors, not tenants. They are vacationing or escaping winter, and are generally in a good mood more often than apartment or house renters would be.
On the other hand, these are visitors, who have no lease. They can leave at any time. In other words, your income can be very unpredictable from month to month. It also can vary a lot seasonally, so you have to budget well. Some RV parks are just closed for half of each year - and this may be the time when taxes and insurance need to be paid.
In buying an RV park, you have to see the actual income from the previous several years. One year is not enough. You want to see that the income has been steady or is growing. You don't want to buy a dying business.
Look at the tax returns to get the truest - or at least the safest - record of income and expenses. Determine the net income before debt service. Decide what you can invest, and what kind of return you want for your trouble. Subtract that "profit" from the net before debt service. What remains is how much you can pay on whatever loans you need to buy the property.
The amount you can borrow - with payments that fit into that number - plus the amount you have for a down payment, determines the most you can pay for the property. Don't forget to account for any additional costs you will have that the current owners don't have, such as higher insurance rates or property taxes. Also, base your calculations on existing income, even if you have a plan to increase it - that is the safest way.
How much do RV parks sell for? I have seen them as low $85,000 for a really small one. Others are priced in the millions. As you look in a given area, you will notice that they are often selling for a similar amount per space. In some parts of Arizona, for example, parks sell for as cheap as $8,000 per space, because of a limited season. In other parts of the country, they sell for as much as $30,000 per space.
You can use this as a rough guide to see if a park is priced in line with others in the area, but in the end it can be very misleading. Good management can make a nice park worth $20,000 per space, while one a mile away may be in a bad location and worth only $14,000 per space. You have to see the actual income and expenses before investing in RV parks.
We used to travel in a conversion van that we sometimes camped in. When staying at RV parks, I noticed that the managers always seemed relatively relaxed and cheerful. I think this may be because the job is not that stressful. It certainly isn't like being a landlord.
First, as an owner/operator of an RV park, you don't own any housing or vehicles that need to be repaired. Every tenant is responsible for their own Recreational Vehicle. You need only maintain the common areas, and can do that how you want.
Second, even if they stay for months, you can collect in advance and ask them to leave on a day's notice if they cause trouble or don't pay. Regular tenant/landlord law does not apply. These are very mobile residences, unlike regular "mobile homes."
Finally, you have visitors, not tenants. They are vacationing or escaping winter, and are generally in a good mood more often than apartment or house renters would be.
On the other hand, these are visitors, who have no lease. They can leave at any time. In other words, your income can be very unpredictable from month to month. It also can vary a lot seasonally, so you have to budget well. Some RV parks are just closed for half of each year - and this may be the time when taxes and insurance need to be paid.
In buying an RV park, you have to see the actual income from the previous several years. One year is not enough. You want to see that the income has been steady or is growing. You don't want to buy a dying business.
Look at the tax returns to get the truest - or at least the safest - record of income and expenses. Determine the net income before debt service. Decide what you can invest, and what kind of return you want for your trouble. Subtract that "profit" from the net before debt service. What remains is how much you can pay on whatever loans you need to buy the property.
The amount you can borrow - with payments that fit into that number - plus the amount you have for a down payment, determines the most you can pay for the property. Don't forget to account for any additional costs you will have that the current owners don't have, such as higher insurance rates or property taxes. Also, base your calculations on existing income, even if you have a plan to increase it - that is the safest way.
How much do RV parks sell for? I have seen them as low $85,000 for a really small one. Others are priced in the millions. As you look in a given area, you will notice that they are often selling for a similar amount per space. In some parts of Arizona, for example, parks sell for as cheap as $8,000 per space, because of a limited season. In other parts of the country, they sell for as much as $30,000 per space.
You can use this as a rough guide to see if a park is priced in line with others in the area, but in the end it can be very misleading. Good management can make a nice park worth $20,000 per space, while one a mile away may be in a bad location and worth only $14,000 per space. You have to see the actual income and expenses before investing in RV parks.
Monday, June 6, 2011
Missouri River Flooding and How We Can Help YOU
As you all know- There are some major issues with the Missouri River flooding. We are aware that it has affected MANY mobile home parks, as well as the residents of these parks. At Niche Investment Network- We want to help!
We own own parks in Yankdon, South Dakota; Nebraska City, Nebraska; and Glyndon, Devils Lake, Pipestone, and Montevideo, Minnesota.
If you are in a flooded park and would like to move to one of these parks, we are willing to help. We will actually pay to have your home moved to our park. If your home is not flooded, but you are looking to move, we will buy your mobile home from you.
Let us help you!
Call or email Dave Reynolds. He can be reached at dave@mhps.com or (970) 856- 4882.
Or contact Frank Rolfe at frank.rolfe@gmail.com or (573) 535- 0206.
We own own parks in Yankdon, South Dakota; Nebraska City, Nebraska; and Glyndon, Devils Lake, Pipestone, and Montevideo, Minnesota.
If you are in a flooded park and would like to move to one of these parks, we are willing to help. We will actually pay to have your home moved to our park. If your home is not flooded, but you are looking to move, we will buy your mobile home from you.
Let us help you!
Call or email Dave Reynolds. He can be reached at dave@mhps.com or (970) 856- 4882.
Or contact Frank Rolfe at frank.rolfe@gmail.com or (573) 535- 0206.
Friday, June 3, 2011
How to Rent a Vacant Billboard by Lowering the Cost--- Without Costing You Anything!
The United States is in a depression. Money is short. And advertisers want real value for their dollar. One of the best ways of attracting advertisers – and providing a great return on their advertising dollar – is to reduce the cost of their advertisement. But how can you do that, when you have a minimum amount you can take for the sign?
Well, here are some ideas on how you can reduce the cost to the advertiser, and still meet your budget for revenue on the sign. And they are all a win/win for both your client and you.
Create a “combo” advertisement.
Why not split the billboard in half – and have two advertisers instead of one? This automatically reduces the cost to each advertiser by 50%. All you have to do to pull this off is find two advertisers who share a common exit. Then you pitch them each to share one billboard with a common exit number across the bottom. The most successful of these approaches are when you can match two businesses with similar goals who are not competitive, such as a motel and a restaurant. But even two competitive businesses, such as two restaurants or two motels, can profit from getting customers off the highway and then let them choose which one they prefer.
By splitting the advertisement in half, you have reduced the cost to each advertiser by 50%, and that means that they only have to sell half as much merchandise to pay for the billboard. And you have not had to reduce your revenue by a penny. Some of the longest-running billboards in America are these type of “combo” signs – they offer such an outstanding value to advertisers that they renew continually.
Creat a “large-scale combo” advertisement.
Sometimes, you can take the “combo” concept to the next level by combining a large number of advertisers into one common theme. An example is a billboard that I organized in the 1980’s for the merchants of Downtown Denton, Texas. The advertisement promoted tourists to visit Downtown Denton by getting off the highway at a certain exit. To pay for it, I organized the merchants together. Even though the billboard cost $1,000 per month, there were 50 merchants in Downtown Denton, so it cost only $20 per month each – a very, very reasonable sum.
The only downside to this type of structure is the extreme management nightmare of organizing and collecting from this many advertisers at one time. That’s why I choose to let the Downtown Denton billboard disband once the Texas economy strengthened – it was much easier to manage and collect from one advertiser rather than 50. But in an economic depression, like we’re in now, it’s a whole lot more fun to have a sign rented – despite the extra work – than have it sit empty.
Learn the available “coop” programs.
Many billboard salespeople are not even aware of the “coop” programs available by major brands. For example, western wear manufacturers such as Justin and Resistol often will pay a percentage of a billboard that promotes both their product and the western wear store that sells it. And it’s not just western wear. Automotive products such as Amalie and Goodyear also have similar programs, as do many other name brands. You need to learn which brands have these programs in place and then go to stores that sell these goods and see if they would rent a billboard if the brand would pay a percentage of the cost. Some of these programs pay up to 50% of the total cost of the billboard, so it is a great opportunity to cut the cost to the billboard advertiser substantially – while not costing you a penny in revenue.
You have to be careful in these programs to make sure that you follow the instructions that the brand requires to get money for your account. The logo must be of a certain size, and there is substantial paperwork required to make the program official. But the payoff is that the advertiser pays a fraction of the normal cost for the sign – with the brand paying the other portion – and your budget for the billboard is not impacted at all.
Conclusion
Everybody loves a bargain – your advertising clients included. Since all three of these techniques allow you to meet your revenue goals for your billboard, while at the same time allowing the advertiser to cut their cost substantially, you should immediately implement these ideas when you are trying to rent that vacant billboard face.
Well, here are some ideas on how you can reduce the cost to the advertiser, and still meet your budget for revenue on the sign. And they are all a win/win for both your client and you.
Create a “combo” advertisement.
Why not split the billboard in half – and have two advertisers instead of one? This automatically reduces the cost to each advertiser by 50%. All you have to do to pull this off is find two advertisers who share a common exit. Then you pitch them each to share one billboard with a common exit number across the bottom. The most successful of these approaches are when you can match two businesses with similar goals who are not competitive, such as a motel and a restaurant. But even two competitive businesses, such as two restaurants or two motels, can profit from getting customers off the highway and then let them choose which one they prefer.
By splitting the advertisement in half, you have reduced the cost to each advertiser by 50%, and that means that they only have to sell half as much merchandise to pay for the billboard. And you have not had to reduce your revenue by a penny. Some of the longest-running billboards in America are these type of “combo” signs – they offer such an outstanding value to advertisers that they renew continually.
Creat a “large-scale combo” advertisement.
Sometimes, you can take the “combo” concept to the next level by combining a large number of advertisers into one common theme. An example is a billboard that I organized in the 1980’s for the merchants of Downtown Denton, Texas. The advertisement promoted tourists to visit Downtown Denton by getting off the highway at a certain exit. To pay for it, I organized the merchants together. Even though the billboard cost $1,000 per month, there were 50 merchants in Downtown Denton, so it cost only $20 per month each – a very, very reasonable sum.
The only downside to this type of structure is the extreme management nightmare of organizing and collecting from this many advertisers at one time. That’s why I choose to let the Downtown Denton billboard disband once the Texas economy strengthened – it was much easier to manage and collect from one advertiser rather than 50. But in an economic depression, like we’re in now, it’s a whole lot more fun to have a sign rented – despite the extra work – than have it sit empty.
Learn the available “coop” programs.
Many billboard salespeople are not even aware of the “coop” programs available by major brands. For example, western wear manufacturers such as Justin and Resistol often will pay a percentage of a billboard that promotes both their product and the western wear store that sells it. And it’s not just western wear. Automotive products such as Amalie and Goodyear also have similar programs, as do many other name brands. You need to learn which brands have these programs in place and then go to stores that sell these goods and see if they would rent a billboard if the brand would pay a percentage of the cost. Some of these programs pay up to 50% of the total cost of the billboard, so it is a great opportunity to cut the cost to the billboard advertiser substantially – while not costing you a penny in revenue.
You have to be careful in these programs to make sure that you follow the instructions that the brand requires to get money for your account. The logo must be of a certain size, and there is substantial paperwork required to make the program official. But the payoff is that the advertiser pays a fraction of the normal cost for the sign – with the brand paying the other portion – and your budget for the billboard is not impacted at all.
Conclusion
Everybody loves a bargain – your advertising clients included. Since all three of these techniques allow you to meet your revenue goals for your billboard, while at the same time allowing the advertiser to cut their cost substantially, you should immediately implement these ideas when you are trying to rent that vacant billboard face.
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