Sign*A*Rama’s Jim Tatem Analyzes Commercial-Sign Market

Last month, we published interviews with electric-sign-company representatives as to what’s trending for them. This month, we present the same concept, except that we’ve spoken with commercial (non-electric) sign-company people. Here, I interviewed Sign*A*Rama president Jim Tatem, whose company operates approximately 800 stores.

What applications for digital printing are currently trending as the most popular?
We continue to see steady growth in banners, tradeshow displays and soft signage. We especially emphasize floor markings and wall graphics as well – from elevators to escalators, pillars and window wrapping. More of our stores are getting into artwork and photographic reproduction on canvas. Of course, the flatbed substrate is becoming more popular because it’s cost effective and labor efficient.

What developments in ink formulations are having the most impact for your business?
On the flatbed side, it’s UV ink, including the white option. Roll-to-roll in the solvent world includes white and metallic inks. Worldwide, our franchisees have broadly embraced latex inks. Aftermarket inks are also becoming more readily accepted as formulations improve and concerns about warranties dwindle. Latex ink’s superior efficiency lets us go from print to lamination immediately, experience better color, and get more involved in soft-signage sublimation.

To what extent are “green” considerations impacting your business?
Customer awareness has certainly heightened, and we’re seeing slight increases in the demand for green considerations. Corporate clients, among others, are requesting green products, or at least green options. Latex ink has helped us here tremendously with HP’s selection of recyclable materials. Many of our stores have individual initiatives and locally recycle their waste products.

Unique to Sign*A*Rama, we’re partnering with our newest franchise, Super Green Solutions, and YESCO, to offer LED retrofits for our customers’ signage and interior/exterior lighting applications. Not all customers ask for it, but many of our stores do an excellent job of helping to create demand.

What substrate developments are the most important to your business?
The development of good ACM (aluminum composite material) products is particularly important for franchisees with flatbed printers where ink adhesion is imperative. We must always balance lower cost with quality products, and avoid knock-offs that may be warped or offer poor adhesion. Many of our stores are moving into ACM fabrication. From a film perspective, advances in product quality from Avery, Oracal and 3M, which provide both effective and repositionable film and high-end laminates, have been pivotal. With printability and predictable media, profit margins are increasing.

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How much does a Presidential election year boost your sales?
Local elections certainly have more of an impact. Overall, growth has been positive the past few years, along with this year. Average store sales are up as much as 23-25% year over year, and, while many may be waiting the election’s outcome, and slightly conservative in their spending, more owners of small to medium businesses understand the need for continuous, effective and efficient advertising messages. That’s our business.

What other technological innovations have helped improve your business the most?
We’re grateful for our strategic alliances with suppliers who continue to improve their technology: HP with latex and flatbed printing, Image One Impact for product advances, Adobe for improved, high-powered software that drives image quality, and YESCO, by allowing us to expand our service and maintenance offerings. We’ve now rolled out an iPad app that drastically improves our ability to provide vehicle wraps.

We couple that with our cloud-based POS software developed specifically in a Sign*A*Rama store.
That’s a fantastic combination. Our operators can easily price, create and finalize a customer’s order virtually anywhere on the planet. As long as there’s WiFi, they’re in business. We also see electronic digital signage continuing to grow, which may include an LCD screen, internally or externally, and more of our stores are combining digitally printed graphics with vacuity films and enhancing storefront, and interior mall windows with dynamic signage, which replaces traditional static images.

How important is vehicle wrapping for your business, compared to a couple years ago?
Many of our stores have seen significant growth to as much as 25-30% of their overall business. A combination of our Bad Wraps partnership, great improvements in media and laminates, and additional training are helping our franchisees embrace this growing market segment. As a differentiator, we also offer partial wraps and highly profitable wraps on other products or fixtures. We’ve done walls, refrigerators, ice chests and gun safes, just to name a few.

How has the availability of credit impacted any desired capital investments?
Although private banks and lenders have certainly tightened their purse strings, we’ve been very fortunate. Our long history and affiliation with several major lenders allowed us to secure a $10 million line of credit for our existing and new franchisees. Our franchisees are astute business people, and many of them have utilized this. Our franchisees have added vehicles, print equipment, electronic digital signage, manufacturing equipment, and/or acquired competitors. Several have purchased their own building.

Those are all great signs of growth. Our line of credit has also helped independent sign companies join our network and simplify their upgrades. Many have found the savings from being part of the Sign*A*Rama family can cover the upgrade costs completely. Staying power and a successful model helps when credit availability may be limited.
 

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