When it comes to custom POP displays, the name of the game is generating the best return on investment. The two key levers of return on investment are revenue and cost. The primary purpose of a POP display is to generate as much revenue as possible. The revenue lever is far more impactful than the cost lever. That is, if you invest an extra $50 or $100 in a display to have really cool signage or LED lighting, that extra touch could drive thousands of extra dollars of revenue and profit. On the flip side, if you pinch every penny and squeeze $25 of cost out of a display, your savings are limited to the $25 you saved. There&#;s no multiplier effect on the cost side.
Therefore, our general advice to our customers is to focus on design features that are likely to drive revenue. However, we also understand that POP displays need to make economic sense, and we always try to help our customers save money whenever possible. In today&#;s blogpost we&#;ll provide 10 strategies for reducing display costs, all of which will help boost return on investment for a POP display and serve as effective cost reduction strategy in business:
1. Consider material yield in designing your display. If you are using plywood, MDF, sheet metal, acrylic, PVC or other sheet goods in your display, think about material yield since it can have a big impact on business cost reduction strategies. Most sheet goods come 4&#;x8&#; so it&#;s worth taking the time to figure out the size of your shelves or other parts that will enable you to get the most out of a sheet.
2. Don&#;t go crazy on the graphics. While graphics are incredibly important to the look and messaging of a display, they are also one of the biggest cost reduction tactics so be intentional about your graphics choices. Resist the temptation to overbrand your display.
3. Start early. Rush jobs cost more. The more time you have to design and produce your display, the better outcome you will have and the more money you will likely save. Starting early affords the opportunity for manufacturers to shop around for materials and get the best prices. You&#;ll also avoid things like overtime and express shipping charges.
4. Make your display knock-down. Generally, knock-down displays are cheaper than assembled displays for 3 reasons: (1) They are cheaper to ship. (2) The assembly labor is pushed onto the retailer. (3) There tends to be less damage in shipping.
5. Choose materials wisely. Having a basic understanding of material costs can help save money. Using wire shelves instead of sheet metal is almost always more cost effective. Melamine is cheaper than laminate. Acrylic is more expensive than PVC. Choosing the right materials for the right application can make a big difference in the cost of the display.
6. Consider shipping costs during the design process. Shipping costs can represent a significant component of the overall cost of a display. Smaller and lighter is better for shipping usually, but if you are shipping your display on pallets via LTL it is important to understand how a pallet classes out. Counterintuitively, in many cases heavier pallets are cheaper than light ones. And, if you are shipping on a pallet to a distribution center, for example, think about the box size early on in the process so you can fit as many units on a pallet as possible.
7. Select standard finishes and colors. Choosing finishes and colors that are readily available in the market will likely save you money. Specialty laminates and custom powder coating colors are almost always more expensive.
8. Choose a POP firm with experience. A POP firm with a lot of design and manufacturing experience will likely know the best way to save you money. They can make design and material suggestions that will stretch your dollar, and the good ones will have value engineering suggestions that can save you money without forcing you to make too many compromises on your design.
9. Boost your quantity if possible. When it comes to saving money, increasing the number of units you are ordering will almost always help reduce per unit costs. This is particularly true if there is tooling involved since you can amortize the cost of the tooling over a greater number of units.
10. Ensure your displays are packed well. For a lot of customers, packing is an afterthought. But, there is nothing worse than investing a lot of money in a display and having it show up damaged. Damaged displays can be expensive in terms of having to remake or repair the display and paying to reship the unit, not to mention the cost associated with lost revenue and potentially damaged customer/retailer relationships.
Jim Hollen is the owner and President of RICH LTD. (www.richltd.com), a 35+ year-old California-based point-of-purchase display, retail store fixture, and merchandising solutions firm which has been named among the Top 50 U.S. POP display companies for 9 consecutive years. A former management consultant with McKinsey & Co. and graduate of Stanford Business School, Jim Hollen has served more than brands and retailers over more than 20 years and has authored nearly 500 blogs and e-Books on a wide range of topics related to POP displays, store fixtures, and retail merchandising.
Jim has been to China more than 50 times and has worked directly with more than 30 factories in Asia across a broad range of material categories, including metal, wood, acrylic, injection molded and vacuum formed plastic, corrugated, glass, LED lighting, digital media player, and more. Jim Hollen also oversees RICH LTD.&#;s domestic manufacturing operation and has experience manufacturing, sourcing, and importing from numerous Asian countries as well as Vietnam and Mexico.
His experience working with brands and retailers spans more than 25 industries such as food and beverage, apparel, consumer electronics, cosmetics/beauty, sporting goods, automotive, pet, gifts and souvenirs, toys, wine and spirits, home improvement, jewelry, eyewear, footwear, consumer products, mass market retail, specialty retail, convenience stores, and numerous other product/retailer categories.
Point of purchase (POP) displays is silent killers in a retail shop. They perform their duties very well but no one thinks or understands. However, you&#;ve to invest a good amount in them. But if you follow this guide properly you can reduce the cost for your next pop display program. Stay tuned until the end.
Everyone in this world wants to save more money. And the answer to this question is Yes, it&#;s very effective. Because the money you&#;ll save this way&#; you can add it to your capital or you can invest that amount somewhere else to make good revenue. Also, you can purchase let&#;s say 3 pop displays instead of 2 if you save the budget.
There are many ways to reduce your pop display program cost. But you&#;ve to follow the best ones to get the perfect solution. And that is what you&#;ll get in this article. We&#;ve made three different sections of those steps to make it easy for you. Most effective ways to reduce your pop display costs are given below:
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Let&#;s see how you can reduce the pop display cost by pre-planning.
Rush jobs are always cost more than you think. Also, there&#;s a chance of doing mistakes, improper design, and sometimes incomplete products. However, some suppliers charge higher prices for rush work. And you&#;ve to pay a good amount also for the express delivery process.
That&#;s why you should plan in advance for your next pop display order program. So, take your time to design and produce the display. Remember one thing; good lead time gives more flexibility to the manufacturer to make your display perfectly.
You need a good and experienced supplier to get exactly what you want on a tighter budget. Newbie manufacturers can just produce what you&#;re asking. But pro pop display makers like Aldrich&#; will not only make high-quality pop displays but also will suggest everything to you&#; which will reduce the cost of your program.
Pro tip: If you&#;re thinking to buy pop displays abroad then China would be a wise option. Pop displays from China come with better quality but at a low price.
Consider these terms to save more money from your next pop display order:
Material is a big factor in display prices. At least basic knowledge of all types of material can help you to save money from the overall cost. Remember, wooden displays are a bit expensive and less durable than metals. Similarly, acrylic and laminate are more expensive than PVC and melamine. So, think of your display structure and duty&#; then choose the material.
Pro tip: If you&#;re thinking of a metal display, you can choose wire shelves instead of metal sheets. This is because wire shelves require less material than sheet metal. As a result, less material costs less.
Try to select regular finishes and colors as much as possible. Some colors and finishes are not always available in the market. For example, chrome finishes are always cost more than powder coatings. So, your vendor can charge more money for that.
Graphics may look very nice but can cost higher. So, put graphics just as much as needed, not a single pixel extra. Read our &#;display finish choosing&#; guide to make the concept clearer.
Material yield is also an important thing in display cost. You should consider this when you want sheet goods like PVC board, sheet metal, acrylic, plywood, and MDF. 4&#;x8&#; is the standard size for sheet goods across the world. So, try to calculate and figure out to use the most of a sheet for your shelves and other parts. A perfect calculation will lower the waste of the sheet. Thus, you can reduce the cost.
Increase your order quantity if you can. For example, you can order pop displays 2 times a year instead of 3 but with more quantity. This will reduce your cost per unit.
Most of the manufacturers like big orders and offers nice discounts on those orders. This is because they can buy many raw materials at a low price and big productions shorten their tooling costs. Don&#;t forget to think of your inventory holding costs before making big orders.
Don&#;t forget to think about the shipping and transport. Read on.
Most of the peoples just focus on display-making costs and forget about the shipping cost. Shipping charges can change the overall cost dramatically. For example, you have saved some money so far, but your shipping has cost more than you expected. Then at the end of it all, you could not save anything.
So, plan your shipping costs before starts. And if you want to transport on pallet boxes then calculate in advance how many units you can put in a box.
Knock-down design means make a display but with several parts. This is the most beneficial way to reduce a good amount from your shipping. The advantage is knock-down designs need half-space than fully welded displays during shipping. Also, the assembly worker charge is on the supplier. But if it needs more than 15 minutes to assemble then you should redesign it.
Packaging is important to keep the units safe while shipping. Poor packaging can result in damage or scratch on display units. As a result, you&#;ve to repair or remake it and sometimes need to resend it to the supplier&#; which means spending more money. So, make sure from your supplier that they do packaging well.
Pop displays, however, are magical things in a retail shop. The more you&#;ll invest in them the more profit you&#;ll make. But avoid unnecessary things and using some tricks you can reduce your pop display cost but the profit will be the same.
One more tip, don&#;t go to inexperienced suppliers. Check Aldrich pop displays and make your decision by seeing their product quality. Most importantly, Aldrich is a pro and experienced pop display maker&#; that will help you to save more money and get high-quality pop displays on a low budget.
For more Custom POP Display Graphicsinformation, please contact us. We will provide professional answers.